As we grow older, we begin to plan for the inevitable. This prospect may sound grim, yet planning for your estate after you pass away can provide considerable value to your family. From reducing your tax liability to protecting your assets, wills and estates can both benefit from a well thought out and comprehensive plan that accounts for every facet of your life. Your home, for example, can be a valuable asset that you have planned to pass onto your child. Many citizens decide to place their house in a living trust for a myriad of positive reasons. While this process can be wholly beneficial for your loved ones, it’s important to know that estate law can be very complex and can require professional assistance. If you have been looking for an estate lawyer in Maryland for just such a task, our firm can help! JDKatz is proud to be your team of estate planning attorneys in Bethesda and Washington, D.C., delivering expert assistance based on our years of experience in the field.
From tax law to criminal litigation, our law firm is equipped to represent clients on a wide range of categories. Today, we’ll highlight a few advantages and disadvantages of putting your house in a trust. When you are finished, be sure to reach out to our Maryland estate planners to begin putting all the pieces in place to take care of your loved ones after your passing.
Advantages of a Trust
Putting your home into a trust can prove to be very beneficial for your estate plan. This complex process is done with the intention of planning for nearly every outcome and having a contingency plan in place in case the worst happens. A living trust is advantageous for this plan because it is set up for your benefit (you are the trustee in this situation) while you are alive. When you pass on or become incapacitated, your trust is transferred to your beneficiaries. While overall very convenient for reducing the stress and uncertainty your loved ones would have experienced, putting your home into a living trust is also beneficial because it can help you:
- Avoid Probate. One of the biggest motivators for placing a home in a trust is to avoid the probate process. This procedure consists of the court’s intervention for determining the best way to distribute your assets upon your death. Even if you name an heir for your home, this process will occur for verification, which can end up costing your estate thousands. Utilizing a living trust is like doing all of the processing paperwork yourself, as your beneficiary will receive the property immediately and avoid the regulations of the court.
- Protect from Taxes. In certain cases, the act of placing your home in a trust can help to protect your loved ones from certain tax liabilities. Our estate planning attorneys excel in this field and can help you navigate the complexities of real estate taxes in conjunction with your trusts and estate.
- Ensure Continuity. Your home is one of your most valuable assets, and one that should be protected from any legal complexities. When implemented properly, your estate plan will account for transference of your property upon death and ensure that your heir has possession. Certain trusts have the risk of individuals losing their homes upon death, so be sure to reach out to our Bethesda estate lawyers for assistance!
Disadvantages of a Trust
While a living trust can prove to be a very beneficial form that does much to protect your estate, it is by no means perfect. One problem many citizens have brought up is the overall complexity surrounding this strategy. Estate law is very complex, relying on a lot of different pieces to create a healthy picture of your ownings. Estate planning in this manner can also require time and effort, as maintaining your plan is necessary for the best outcomes. People who are already busy with normal tasks and errands now have a range of tasks to keep up on to ensure that their time, energy, and assets are not at risk. The tax benefits surrounding your living trust are also a concern, as the complex nature of this strategy does not allow for many advantages for consumers.
While these challenges can be frustrating, it’s important to remember that professional estate lawyers have the skills and experience to navigate this process to create the best outcome for you and your loved ones. Our estate planning attorneys in Bethesda will work hard to cut through the stress and red tape for your estate, minimizing the burden on your daily life while maximizing the benefits in cause of your untimely passing.
Balancing Revocable and Irrevocable Trusts
The type of trust you set up will have a major impact on the benefits in connection with your home. Revocable living trusts are advantageous because you have full control over your assets, being able to change beneficiaries and take your house out if you wish. Revocable trusts can face home estate taxes and creditors, though. Irrevocable trusts are set in place and cannot be changed. On the bright side, though, your home will be exempted from estate taxes.
It can be challenging determining the best approach for planning for your estate when you pass away. The morbidity of this process is offset by the benefits that you can provide for your assets and your loved ones. If you’re in need of proven estate lawyers in Maryland to help in this task, JDKatz is here for you. Our professional estate attorneys can work with you to create a comprehensive plan that keeps your property safe. Contact us today to learn more about our estate planning services.
