Saturday, April 25, 2009

Keeping Your Real Estate in the Trust


If you have a trust, one of the important events to keep in mind is the purchase of new real estate or the re-financing of real estate.

Whenever these two events occur, the real estate title will often not be in the name of the trust. The result of the real estate properties not being in the trust is that if you die, the real estate will have to go through probate, which will frustrate the whole purpose of having a trust, and will cost your estate thousands of dollars in court costs and other fees.

Because real estate is often the "crown jewel", that is, the most valuable asset in the trust, it is usually the main asset which you do not want to have to go through probate.

Lenders prefer that the individual owners are on title to the real estate, and because the lenders more or less control the escrow, the deeds to the real estate will usually not be in the name of the owner's trust.

So, the Rule of Thumb is that if you have a trust and; you either buy new property or you re-finance existing real estate, contact you Estate Planning lawyer and have him or her check to make sure the title to that property is in the name of your living trust.

Or you can contact me at http://www.tompkins-law.com if you have any questions.

Remember it is not enough to create a living trust, you must always make sure that your valuable assets, like real estate, are in the name of that trust in order to avoid probate and to ensure a smooth transfer of your trust estate to your beneficiaries.

Dwight Edward Tompkins, Attorney at Law

http://tompkins-law.com/

No comments:

Post a Comment