Many people wonder whether it is a good idea to place their house in a trust. Often people fund a living trust with real estate, financial accounts, life insurance, annuity certificates, personal property, business interests and other assets. For a revocable living trust to take effect, it should be funded by transferring certain assets into the trust. Setting up a trust, however, is only half of the solution. Many people assume that once they sign the trust documents at their attorney’s office, they are ready to roll. To ensure your trust performs as it was intended, timely and proper funding is vital. Though setting up a trust can be costly and complex, it can make the inheritance process easier on your beneficiaries. These other assets will still go through the probate process. While your most important assets may be transferred as part of your trust, there are some assets that will not fund your trust for a variety of reasons. It is important to note that there is no way to completely bypass probate. While it is true that attorneys generally charge more to draft a living trust than a will, the cost will likely be offset by other savings down the road, such as through the elimination of probate and legal fees, appraisals and associated costs. The chief disadvantage of creating a trust is the initial cost. Another feature is that placing your assets in a trust will help protect them should you become incapacitated. A trust can also provide you with some level of privacy as to the information shared about your estate. Placing your important assets in a trust can offer you the peace of mind of knowing assets will be passed on to the beneficiary you designate, under the conditions you choose and without first undergoing a drawn-out legal process. There are several benefits of creating a trust.
Which brings us to revocable living trusts, which create an avenue to pass your assets with ease after your death. Advantages and Disadvantages of Revocable Living Trusts
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