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/

TRUST BASICS

TRUST BASICS





Although there are many kinds of trusts, the most common trust used in Estate Planning is the Revocable Living Trust, also referred to as the Living Trust, the Inter Vivos Trust, and the Revocable Inter Vivos Trust.





The Revocable Living Trust which for simplicity, I will refer to as a Trust, basically does the same thing as a Will but with many added benefits.





The main benefit is that unlike a Will which must be probated in court, a Trust avoids probate when it is properly created and funded.





A Trust is a legal entity, similar to a corporation, and as such it can own property. When a person puts all of their assets and property into the Trust (the trust is "funded"), and that person passes away, the Trust survives them. Therefore, because the Trust is the owner of the assets and property, no probate is needed.





A Successor Trustee named in the trust declaration or trust agreement settles the affairs of the decedent and distributes the remaining assets and property to the beneficiaries without a probate.





The avoidance of probate saves the estate thousands of dollars and a Trust usually allows for a faster and more private settlement of one's estate than the traditional Will.





I practice law in California, and I focus on Estate Planning, Trusts and Wills, as a major part of my law practice.





DWIGHT EDWARD TOMPKINS, Attorney at Law





http://www.tompkins-law.com/



My blog, Trusts and Estates, is for educational and informational purposes only, and it does not constitute legal advice. I practice law in California and my comments on this blog are applicable only to California. The laws of other jurisdictions may vary. You should always consult with a qualified attorney for legal advice in your jurisdiction.

California Bar No. 149756

WELCOME TO DWIGHT EDWARD TOMPKINS' BLOG

WELCOME!!!

This is my first blog on blogger.com; and as an Estate Planning attorney, I will be writing about Estate Planning, Trusts, and Wills each week.

My task will be to present important topics in the law of Estate Planning, especially Living Trusts, in a straight forward, no-nonsense approach.

In the many Estate Planning Seminars that I have given over the past few years, I have discovered that people are very interested in providing for their family, protecting their assets, nominating guardians for their minor children, and planning for possible incapacity in the future.

My philosophy in the practice of law is present legal solutions in an easy to understand manner, and to provide my clients with accessibility to the benefits of the law.

Occasionally, I will write about other topics close to my heart, like backpacking and hiking.

I practice law in Orange County, California.

Thanks for reading my blog.

Dwight

DWIGHT EDWARD TOMPKINS, ATTORNEY AT LAW

http://www.tompkins-law.com/