The short answer to this question is: Yes. Many people choose to put their home(s) in a trust. Your house does not have to be worth millions to make this a viable option. One of the main reasons people choose to do this is to help their loved ones avoid the probate process after they pass away. Any assets placed into a trust, including a home, will not be subject to probate which can free your loved ones of the costs, time and hassles of this process.
If you own property in another state, it is usually a good idea to title the property in the name of your revocable trust to save the time, expense and possible inheritance taxes in the state in which your property is located.
Types of Trusts
- Revocable Living Trusts in Denver: These documents can be amended or revoked at any time: you can change/add beneficiaries, reallocate assets, etc. You still have access to and control of your property and you continue to pay taxes on the property, even after your death.
- Irrevocable Living Trusts in Denver: These are permanent documents that cannot be altered in any way or revoked. The assets in the trust are no longer controlled by you; they are managed by a trustee, another person that you specify in the trust. Typically, these assets are not included in your estate, even after your death.
Disadvantages of Trusts
Keep in mind that there are certain disadvantages of putting a house in a trust. Trusts are often more challenging to create due to their complicated nature. As you accumulate additional property that you want to add to the trust (or sell properties that need to be removed from the trust), it may take time and effort to transfer those assets into and out of the trust. This can add to the costs of creating a trust in Colorado.
The Denver will lawyers at Brown & Crona, LLC can help you understand the different types of trusts, assess your individual situation and recommend the right type (if any) of trust to protect your home and other important assets. Call (303) 339-3750 or send us a message online to learn more.