If you want to put your house in a trust, you can. It’s just like any asset. Putting a house in a trust can offer some advantages, but you should be aware of exactly how the arrangement will work before you decide. You also have to figure out which kind of trust is best for you. A Washtenaw County trusts attorney from our firm can answer your questions and help you make these important estate planning choices.
What Happens If I Put My House in a Trust?
When you put your house in a trust, you are making it easier to pass it down to your selected beneficiary. Assets in a trust do not have to go through probate. This means that your beneficiaries get them quickly and without having to worry about court costs and other related expenses. You just have to make it clear who the house is going to go to when you pass away.
Putting your house in a trust can also offer estate tax benefits and a few other advantages. In some cases, a trust can even protect this property and other assets from creditors or lawsuits. We’ll talk about that more in a second.
How Can I Put My House in a Trust?
Putting your house in a trust is simple. You just have to decide what kind of trust you want to use, appoint a trustee, and select beneficiaries. You can also name backups, in case anyone passes away. Then it’s time to “fund” the trust. You can place the house and any other assets in it, ensuring that they are all ready to be passed down to the next generation.
Should I Use a Revocable or Irrevocable Trust?
You can make a trust revocable or irrevocable. A revocable trust allows you to change the rules and leaves you in charge of assets. An irrevocable trust takes your power away and places it in the hands of a trustee.
Why would you want to give up control over your assets? An irrevocable trust can protect your house and other assets from creditors. If you get sued, it’s also difficult for someone to access those assets. So if your top concern is protecting your estate and leaving something behind for your loved ones, this type of trust might be your best bet.
How Should I Choose a Trustee?
Michigan does not set too many specific standards for a trustee. They just have to be 18 years of age or older and of sound mind. You should pick someone who can be relied on though. Managing a trust can be a complex task and you need to choose someone who will take it seriously.
Schedule Your Consultation
If you’re looking for the most effective ways to protect your assets and pass them down to your heirs, we’re ready to help. Contact Collis, Griffor & Hendra to schedule your consultation with our estate planning lawyers. We would be happy to tell you more about all of your options.
