One of the considerations you and your partner need to make after buying a home is determining what happens to it after both of you have died. The home can be left to a relative in a will, but it could end up stuck in probate for weeks or months. You can potentially avoid this by transferring the ownership of the home to a living trust. Whether or not this is the right option for your home depends on several factors. Before creating the living trust, here is what you need to know.
Can You Set Up a Living Trust If You Have a Loan On the Home?
Some homeowners dismiss the idea of transferring the ownership of the home to a living trust because they believe having a loan on it automatically disqualifies them from doing so. In reality, you can transfer the home even with a mortgage loan still owed.
When you transfer the home, the loan follows it. The trust will be responsible for making the payments. After you and your partner's death, the beneficiary of the home will then be responsible for the debt.
You also do not have to worry about notifying the lender of the changes to the ownership. However, doing so could be useful if there are any anticipated problems that will require the trustee or the beneficiary to contact the lender.
Is a Living Trust Necessary?
Living trusts are highly beneficial. They can help your beneficiary and the executor of the estate avoid probate court. It can also reduce some of the taxes that your beneficiaries will have to pay. However, there is a chance that it might not be the best option for dealing with your home.
If you do not have the time to devote to establishing a living trust, it might not be an ideal arrangement. The process is time-consuming and requires considerable paperwork. However, if you are working with a trusts lawyer like Thomason & Hessmer, they can take care of a majority of the work for you.
In addition to taking the time to create, you still have to draft a will. Ideally, you were planning to create a will anyway, so having to do so should not be a hassle. To simplify the process, you can also turn to your trusts lawyer.
Your trusts lawyer can answer any concerns that you and your partner have about transferring your home to a trust.Share
22 May 2017
Are you hoping to purchase your first home in the near future? Perhaps you’ve already found the house of your dreams but still need to make an offer on it. Before signing on the dotted line, consider hiring an experienced real estate attorney. A real estate lawyer can help you complete the enormous amount of paperwork you’ll need to fill out during the closing process. This professional can also help you successfully purchase a home that has a lien on it. On this blog, I hope you will discover the advantages of securing a real estate attorney during the complicated home buying process.