Part II: Using a Trust to Help Avoid Probate
In the prior article, we discussed why the title to your home should match your estate plan. One common reason homeowners review title ownership is to help avoid probate through the use of a trust.
A revocable living trust is often used to manage assets during your lifetime and provide instructions for what happens after death. Many homeowners choose this approach because assets properly titled in the trust may avoid probate proceedings.
Probate is the court-supervised process used to transfer assets after death. While probate may be necessary in some situations, many families prefer to minimize court involvement because the process can involve delays, expenses, and public filings.
If your estate plan includes a trust, your home may need to be titled in the name of the trustee of your trust rather than in your individual name. Simply signing trust documents does not automatically transfer ownership of the property into the trust.
Failing to properly title the property can defeat part of the purpose of creating the trust in the first place. Even if your trust contains detailed instructions, the property may still require probate if ownership was never transferred.
Homeowners should also confirm that insurance coverage reflects trust ownership. Insurance carriers may require the trustees to be listed as additional insureds to ensure proper coverage.
Reviewing your deed and trust together can help ensure your estate plan functions the way it was designed.
Questions about your estate plan? Call our office at 561-694-7827 and schedule a consultation. Elder & Estate Planning Attorneys PA, 480 Maplewood Drive, Suite 3, Jupiter.
The content of this article is general and should not be relied upon without reviewing your specific circumstances by competent legal counsel. Reliance on the information herein is at your own risk, as it expresses no opinion by the firm on your legal needs. An attorney client relationship is not created through the information provided.
