The Benefit of Protecting Your Home Investment with a Revocable Living Trust
Congratulations! Now that you’ve purchased the biggest asset in your life, you should think about how you will protect it. From what, you ask? Well, no one thinks that it’ll happen, but in the unfortunate and unlikely situation where you and/or your spouse pass away, do you have an Estate Plan for your beneficiaries?
A Revocable Living Trust is the foundation of a solid Estate Plan
It’s not surprising that most people under the age of retirement don’t have any Estate Plan. They are likely planning for their next yearly vacation, or maybe even retirement! The last thing they want to do, or have time to do, is plan for their death; however, a well thought-out Estate Plan would be the best protection for your loved ones you leave behind.
What is a Revocable Living Trust?
So, how do you protect your biggest asset? One of the basic ways to protect your home is through a Revocable Living Trust. This is a document that – if set up properly – will allow your home and other assets to avoid probate or the Court involvement of distributing your assets upon your death. You would want to consult the services of an Estate Planning Attorney who can explain the pros and cons of a Trust.
The simple beauty of a Trust is you can make changes throughout your life since you and/or your spouse control it until you are no longer able to. You could still sell the home, refinance it, remodel it, or give it to your children…but upon your passing, it will go to whomever you specified in the trust without a lot of hassle, wait, or cost.
So, do your beneficiaries a huge favor…a little bit of planning up front goes a long way!
Disclaimer: I am not an attorney or a tax consultant. Please consult one for details and further questions.