Advantages and Disadvantages of Putting Property in a Trust
Posted by Techyscouts | Posted on 04/30/2018
With his knowledge and expertise when it comes to Los Angeles trust real estate, Mike Millea is able to assist you in navigating the complexities of a trust and knows the legal procedures needed to get you what you’re looking for. It’s always a great idea to consider placing your own assets in trusts in order to think about the legacy that you’re going to leave. Our team is here to help you with that in any way possible! One common question that we’re asked about trusts is whether it’s a good idea to put residential, commercial, or investment property into one. It’s a complicated answer to a complicated topic, which is why we’re going to sort it out with some advantages and disadvantages.
You Can Avoid Probate
By putting your property in a trust, you can avoid probate (the process in which a deceased person’s estate is properly distributed to his or her heirs) and the costs that come with it. Homeowners who want to avoid probate and desire to transfer the title of their home to their heirs as soon as possible find this to be a fantastic advantage.
You Can Save on Estate Taxes
Even though putting your property in a trust won’t generate any additional favorable tax treatment, you may end up saving on some estate taxes. This pretty much depends on how effectively that your financial plans for your estate have been created. Unfortunately, creating a trust that doesn’t have a good estate plan will typically save little or no estate taxes.
You Can Protect Yourself If You Become Incapacitated
If you become ill and you’re unable to manage your own finances, another trustee can be chosen to manage your trust in order to protect your property. If your co-trustee is your spouse, this can simplify protecting your property even further. Your spouse can remain the trustee and manage your property as well as any other assets that have been transferred to the trust.
Disadvantages of Putting Property in a Trust
While the advantages of putting property in a trust are undeniable, there are still a few disadvantages. Designing a trust can be very complex. If you just place your property in a trust, the rest of your assets will be subject to probate. If you place other assets in a trust, you’ll have to be diligent in keeping up with transferring new assets and removing those assets that you no longer own. All this extra work will lead to added legal costs.
Contact Your Los Angeles Trust Real Estate Agent Today!
Mike Millea has a wealth of knowledge when it comes to Los Angeles trust real estate and he’s more than happy to put it to use in helping you! Please don’t hesitate to give us a call at (310) 939-9356 and feel free to contact us online if you have any questions or concerns regarding trusts, investment property or any other areas of real estate. We can’t wait to hear from you!