Real Estate Insights

Should I hold title to real estate in a Living Trust? A question that should be referred to an attorney and or tax expert qualified to evaluate your particular situation. Here are some general facts to know about Living Trusts.

Why do people use a Living Trust? Answer: To minimize or postpone death taxes, avoid time consuming and expensive probate, and shield property from attack of certain unsecured creditors.

Can a Trust hold title to a property? Answer: No! The Trustee actually holds title on behalf of the trust.

Can a Trustee borrow money on real estate in the Trust? Answer: Yes, if it is permitted by the trust. Be aware that some real estate lenders will not loan money to a trust, and the parties may be required to deed out of the trust to secure a loan, then deed the property back into the trust after the loan has funded.

Conclusion: Complex tax and legal questions should be referred to competent professionals. Hiring a lawyer to create a trust or will can be costly but do it yourself forms can prompt challenges and when completed incorrectly can have devestating consequences on your estate.

There is no better peace of mind than to know that whatever you have left over when you die goes where you want. So if you haven't looked into your living trust or will lately you may just want to contact a competent professional for a quick evaluation of your estate.