The estate planning process allows you to take control over what will happen to your assets after you die, including high-value assets like your home and investments. You might find, however, that simply using a last will and testament is not going to be enough to help you accomplish your estate planning goals. Using a trust can be more beneficial in many circumstances.
A common question we receive from estate planning clients is whether they should place their home or investment accounts in a trust. There are multiple kinds of trusts which you can use to pass down assets, but generally using trusts is a better idea than only using a will.
Here are a few reasons to consider putting your home and investments in a trust:
- Avoid probate: This is one of the most important reasons to make generous use of trusts in your estate plan. Trusts bypass the probate process, which can be lengthy and expensive. It is in your best interest to avoid probate as much as possible.
- Faster transfer: When your assets are placed in a trust and the probate process is avoided, you’re able to transfer ownership of your assets much faster to your chosen heirs.
- Pass on control before you die: Certain types of trusts will allow you to pass on control of your assets to your chosen beneficiaries before you pass away.
- Avoid tax issues: People who have wealthy estates can use irrevocable trusts to avoid or minimize their estate taxes. When you place an asset into an irrevocable trust, you transfer ownership to that trust, meaning the asset’s value no longer counts as part of your total estate value. In addition, if you use certain types of trusts, heirs can save on capital gains taxes if they decide to sell the house or investments later. Those taxes can be significant, so this may be a great benefit.
- Qualify for Medicaid: Putting a house into a properly structured irrevocable trust protects the value of that house from Medicaid. This can help you qualify for Medicaid so you can get into a nursing home.
- Protect your assets: Assets you place in an irrevocable trust can also be protected from creditors. Protecting your wealth from future creditors can be a significant benefit.
Selecting the Right Trust
We help our clients determine the most appropriate trust for their estate plan. For more information, contact an experienced estate planning lawyer at Baker Law Group, P.C.
We offer an initial free consultation. To schedule, call our office, send an email, or complete our online form.
Baker Law Group P.C.
Hingham – Brockton – Holliston – Plymouth