Putting your home in a trust might sound like a good idea, and in most cases, it probably is for the best.
So that you’re aware, though, of what that might entail for you, here’s a bit of an introduction to what you may need to go through and what might be the results. As with most trusts, this could involve dealing with assets, assets, and more assets. Just for starters, your home itself is perhaps one of your largest assets.
And because of how important your home is, trust law can provide added protection. Money concerns might not need to be so scary as long as the roof stays over your heads.
Having your home inside of a trust is also a great way to leave it to your children or to someone else. Wills aren’t the only thing that you can use for passing on your property.
Listing the Trust Assets
Because you’re not just up and buying a home in the traditional sense, you’ve got to get information on everyone involved in the trust. That means having their name, address, and ages. Be mindful of guardians, too. If there are beneficiaries with special needs in this trust, make sure their guardians are listed. Titling of trust assets appropriately is a great way to avoid a Minnesota probate too.
You also need to mention any assets that will go into this trust, including dollar values. Basically, if something is involved in the trust, check with a legal expert to see if it should be listed.
Cash, deeds, vehicles, and even art can be added to the trust. That said, consider setting aside some of the net worth of this trust. It might help cover expenses should taxes or probate become a factor in the future.
Asset Protection
Generally, trusts are created to help pass down assets. Houses can be put into trusts so that they’re passed onto a beneficiary. The typical choice for houses is a living trust. That, more or less, means that someone can start managing the assets in the trust while you’re still living.
Moreover, they’ll probably be working for the beneficiary’s benefit. Think of trustees as the guardians of trusts in that they oversee the enclosed assets.
Keep in mind that you still have a bit of choice in what happens. For example, if your family wants to sell of the home after you’ve passed, you can decide how the proceeds will be distributed.
Say that you want half of the money to go to your spouse and half to your children. That should be fine. There’s also deciding whether or not the trustee that you pick becomes a beneficiary. This applies to even successor trustees.
Minnesota Revocable Trusts
The short answer to why you would want to go with a revocable trust for your home is control. It basically allows you to change the trust whenever you want to. This is a great option for families with more than one child Say, for example, that you make your eldest daughter the trustee initially.
So, at first, you have her take care of the property. However, as time grows on, she either grows tired or her younger sister wants to help. That might cause you to change things.
You should also be aware of how the home is owned. Should you purchase a home with a revocable trust, you don’t own the home, but rather, the trust owns the home.
Though, if you’re the trust’s writer or granter, the trust is the means by which you own your home. Either way, your claim to your home is dependent on the trust rather than it being the usual home ownership. That trust is what lets you own that home.
Minnesota Irrevocable Trusts
There’s also the option to place your home into an irrevocable trust. The nice part about this is that it tends to help protect against both taxes and potential money issues. Irrevocable trusts in general are good for stopping unwanted costs.
This Minnesota trust won’t impact only those who are living in the house right now, but whoever maintains the trust as well. It’s one of the best ways to help your kids in case they have trouble with money when you’re not around to help them out.
Don’t forget that this is still an irrevocable trust. You probably won’t be able to change anything once it becomes active. So, that means if you want to change who the trustee is, you might not be able to do anything. There’s also the factor that the person who will be your trustee will need to be a fiduciary.
That means that they’ll probably be serving your beneficiaries with selfless intent. That may impact in who you chose to be a beneficiary and a trustee. So, if you have someone who will want to have their say in the house, consider making them a beneficiary rather than a trustee if you’re going to peruse an irrevocable trust for your home.
Minnesota Trust Lawyers
How you manage your household is one thing, but how you protect your household is another. Protection may not mean making it tornado-proof. Protection, rather, may mean that it stays where you want it to stay and in the ownership of someone you trust. Talking to a Minnesota trust lawyer is a good start.
By getting in touch with Flanders Law Firm LLC, you can place your house into a trust for added protection. They’re available when you call them at 612-424-0398.
They’ll also be able to help you better understand things in case you’re looking to change a trust. It’s completely understandable to have questions about what trust law can do for you or what kind of rules in the trust can be modified.
My wife and I own our home and are thinking of putting it into a trust account for our kids is there anything else we can add to it. Don’t have that much in assets.