There are many advantages to putting your house in your trust. However, just like everything else in the world, there are certain downsides as well. The situations of no two people are alike. There are several factors that influence estate planning for every individual.
If you are debating whether you should put your house in your trust, you should not be making the decision on your own. In order to make an informed decision, you must first consult with a New Jersey estate planning attorney to understand how the options may benefit or hurt you.
Advantages and disadvantages of putting your house in your trust
- You can avoid probate.
One of the biggest advantages of putting your house in your trust is avoiding probate. It is a legal process that ensures that your assets are dealt with according to the terms of your will. The process can be very time-consuming and expensive. If you own multiple homes, you face multiple probates.
- Future incapacity protection.
If you become incapacitated due to some illness, you can appoint a trustee to manage your trust on your behalf. This is possible with the help of revocable trusts. If you have a spouse, you can appoint them as a trustee who makes the process a lot easier.
- Asset protection.
One thing about trusts is that the assets remain protected from creditors and the court no matter what happens. Should you ever file for bankruptcy, you won’t have to worry about losing your home.
- Additional paperwork.
There is a lot of paperwork involved in putting your house in your trust. Every house has a title, and you will need to change yours to show that the trust now owns it. You will need to prepare a new deed and transfer the ownership. Then, there is additional paperwork and record-keeping. However, it is still less hassle than probate.
- Other assets will still be subject to probate.
While your house will remain protected in the trust, your other assets remain subject to probate. Therefore, you do not benefit a lot because you will be going through the probate process anyway. You have the option to put other assets in your trust as well. But that is again a complex process.
Here are the benefits and the downsides of putting your house in a trust in New Jersey. If you are convinced by the benefits, an estate attorney can help you get started with the process. It may seem complex at first, with an attorney can lessen your burden by handling a major portion of the work.