Benefits and Steps for Putting Your New Home Into a Trust

Putting your new home into a trust is a smart estate planning strategy that can provide you with numerous benefits, including avoiding probate, minimizing estate taxes, and ensuring your property is passed on to your loved ones according to your wishes. Here are some steps to follow to put your new home into a trust:

1. Choose the type of trust you want to create: There are several types of trusts available, including revocable trusts and irrevocable trusts. A revocable trust allows you to maintain control of your property during your lifetime and make changes to the trust as needed. An irrevocable trust transfers ownership of your property to the trust and cannot be changed once it's created.

2. Hire an attorney: Creating a trust involves complex legal issues, so it's best to consult an experienced estate planning attorney. The attorney can help you determine which type of trust is right for you and guide you through the process of creating and funding the trust.

3. Draft the trust agreement: The trust agreement is a legal document that outlines the terms of the trust, including the beneficiaries, the trustee, and the distribution of assets. Your attorney can help you draft a trust agreement that meets your needs and ensures that your property is transferred to the trust correctly.

4. Fund the trust: To put your home into a trust, you must transfer ownership of the property to the trust. This process involves changing the title of the property from your name to the name of the trust. You'll need to work with your attorney to prepare the necessary paperwork, including a deed transferring the property to the trust.

5. Notify your mortgage lender: If you have a mortgage on your home, you'll need to notify your lender of the transfer of ownership to the trust. You'll need to provide the lender with a copy of the trust agreement and the new deed. You may also need to refinance your mortgage if the lender requires it.

6. Update your estate plan: Once your home is in the trust, you should update your estate plan to ensure that your other assets are also properly titled and owned by the trust. This will help ensure that all your assets are distributed according to your wishes when you pass away.

Overall, putting your new home into a trust requires careful planning and execution. Working with an experienced estate planning attorney can help ensure that the process goes smoothly and that your property is protected for years to come.