Why Should I Put My Home in a Living Trust?

Why Should I Put My Home in a Living Trust?

By Attorney Paul Hanks, Ironclad Living Trusts in California

In California there are many powerful reasons to transfer a home into a living trust and probate avoidance is merely one of them. You will be surprised to learn the many benefits of putting your home into trust.

The following are some of the wonderful benefits that are achieved by placing your home into a Revocable Living Trust.

• A Revocable Living Trust avoids the probate of your home. If a homeowner in California only had a Will in place, after that homeowner’s death a petition would need to be filed in court.
• For married couples, if a Living Trust is not in place at the time of the first spouse’s death, a Spousal Property Petition often needs to be filed in the Superior Court. The purpose of a spousal petition is to obtain a court order for the transfer of community property assets solely into the name of the surviving spouse. A Revocable Living Trust completely eliminates the need for the filing of a spousal petition.
• The generational passing of the family home is very important. Often a home passes through multiple generations over time. A living trust would protect the equity in your home. A living trust serves as a safeguard against title fraud. A living trust ensures the generational passing of the home from one generation to the next.
• Peace of mind is a very important goal in estate planning. If you are married and you are the first spouse to die, do you really want your spouse to have the ability to add anyone they wish to title on your home? A marital living trust provides the assurance that your home will not pass to a stranger, but instead will pass to beneficiaries named in your trust who you have agreed to with your spouse.
• Ordinarily the State of California will pursue the equity in your home for the payment of benefits made on behalf of Medi-Cal members. The good news is that with a Revocable Living Trust in place, the State of California is prevented from seeking the equity in your home to recover for the payment of Medi-Cal benefits.
• Once your home is deeded into a Revocable Living Trust, your home is insulated from loan fraud. This protection against loan fraud is accomplished by way of the recording of a deed transferring your home into trust.
• A Revocable Living Trust contains provisions that allow the trustee to protect the elderly and estate assets. The elderly are a vulnerable group and are often victimized by scams. A properly drafted trust empowers the trustee to exercise unlimited trustee powers to protect the elderly and preserve the estate.

These are merely some of the reasons to explore the benefits of a revocable living trust. The multiple different protections that a Revocable Living Trust provides for your home is merely one excellent reason for a living trust.

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