WHY A LIVING TRUST
A living trust, also known as a revocable trust, is a legal document that allows you to transfer ownership of your assets, including your home, into a trust while you are still alive. You can manage and use these assets as you normally would, and you have the flexibility to change or revoke the trust at any time.
- Avoiding Probate:
- Probate is a court-supervised process of validating a will and distributing the deceased’s assets. It can be time-consuming, costly, and public.
- With a living trust, your home can bypass probate, allowing for a quicker and more private transfer of ownership to your beneficiaries. This can significantly reduce the time and expense associated with settling your estate.
- Continued Management During Incapacity:
- If you become incapacitated due to illness or injury, a living trust ensures that your home and other assets are managed according to your wishes without the need for a court-appointed guardian.
- This provides peace of mind knowing that your affairs will be handled smoothly and without court intervention.
- Flexibility and Control:
- As the trustee of your own living trust, you retain full control over your home and other assets. You can buy, sell, refinance, or make changes to the trust as needed.
- This flexibility allows you to adapt to changes in your circumstances or preferences.
- Privacy:
- Unlike a will, which becomes a public record once it goes through probate, a living trust remains private. This means details about your home and other assets are not disclosed to the public.
- Reduced Legal Challenges:
- A properly drafted and funded living trust can reduce the likelihood of legal challenges from disgruntled heirs. This is because the trust is harder to contest than a will.
STEPS TO PLACE YOUR HOME IN A TRUST
- Consult an Attorney: It’s essential to work with an experienced estate planning attorney who understands Virginia law. They can help you draft a living trust that meets your specific needs and goals. If you’d like a recommendation, I am happy to connect you with a trusted estate planning attorney.
- Transfer the Title: To place your home in the trust, you need to transfer the title from your name to the name of the trust. Your attorney can assist with this process to ensure it is done correctly.
- Update Insurance and Records: Notify your homeowners insurance company about the change in ownership to ensure continued coverage. Update other relevant records to reflect the trust’s ownership of your home.
- Manage the Trust: As the trustee, you will manage the home as you did before. You can make changes to the trust, including adding or removing assets, as your circumstances change.
