A trust is an arrangement that allows the management of property and other assets when the owner of the assets is incapacitated or passes away. One of the most common pieces of property put into a trust is a home. So, let’s take a look at the legal aspects of placing and owing a house in a trust in Maryland.
Should I Put My House in a Trust?
The advantages of putting your house in a trust:
- It will help you avoid the time and costs of probate and will allow you to transfer the title of your home to your heirs quickly.
- If you become unable to appropriately manage your own finances and assets, you can select another trustee (such as a spouse, child or trusted friend) to manage your trust for you and protect your home.
- If your trust is designed properly, including a house can help you save on estate taxes.
The disadvantages of putting your house in a trust:
- Adding your home to the trust can increase the complexity of designing your trust, thus increasing the legal costs to draw up and maintain the trust.
- If you place only your home in the trust, many of your other assets may still be subject to probate.
What Happens to My House When I Pass Away (If It’s in a Trust)?
If your house is included in a living trust, ownership can be transferred from you to the beneficiary or beneficiaries soon after you pass away, if you wish, or it can be held in Trust until later. Holding the property in trust after your death can be useful if you want to allow someone to continue to live in the house for a certain period of time but not own it. The Trustee, the person you have chosen to administer your trust once you are no longer able, will manage the property, pay bills, and, when the time is right, transfer the property to whomever you determine. All property included in your living trust will avoid probate, so the actual transfer of ownership of your home should only take a few weeks.
How Do I Set Up My Trust to Include My House?
You can add your house to your trust with a transfer deed, which is a legal document that transfers ownership of the home into the trust. There are a few different deed options for you to choose from, so it’s best to work with an experienced Maryland estates and trust lawyer to make sure you have the proper deed for your situation. Getting professional help with adding your house to your trust will also allow you to better understand the process and ensure you avoid future costs and complications.
DK Rus Law is your best resource for legal assistance regarding wills, trusts, and all other types of estate planning. For a free consultation on your specific situation, give us a call at 410-591-6992, today.