I am in the process of purchasing a home, do I need to modify my legal documents in any way?
Congratulations on the purchase of your home! You will now need to create a Living Trust and hold title to your home in the Trust. In order to ensure that your property passes to your family, and to avoid estate taxes and probate, it is crucial that you put your property into a Trust. Upon creation of your Trust, a deed of your property will be recorded naming you, as Trustee of your Trust, as owner of the property. You may then give the property to whomever you chose through the Trust. You can also change the beneficiary of your Trust without changing the title on your home. I suggest any assets valued at over $10,000 be put into your Living Trust also. These assets may include bank accounts, stocks, bonds or other investments.
A living trust will also provide for your minor children by establishing a children’s trust for them, which will give your successor trustee the power to pay for their education, healthcare and basic living expenses until they reach a specified age over 18 and receive an outright distribution. You can keep your child’s inheritance in trust for them for as long as you like.
Another advantage of a living trust, is that it acts as a disability plan. In the event that you become incapacitated, your successor trustee can take over your financial affairs and pay your bills.
Now that you are a property owner, you will definitely need a Living Trust. Please call our office (619) 222-5500 or your own attorney to schedule an appointment to draft a Living Revocable Trust for you.