During the COVID-19 pandemic, home sales have skyrocketed. According to Fortune, new home sales jumped 43% in August 2020 compared to a year earlier, and an estimated 63% of millennials are planning to purchase a home within the next year.
There is so much to think about with a new home – insurance, renovations, decorating – but one of the most important things to consider is what happens to your home if something happens to you. We talk a lot about the value of having a solid plan for your estate, and that is particularly important when you own a home.
Many people chose to put their house into a trust, rather than simply including it in a will. While setting up a trust is more complex, it’s essentially a way to determine how you would like your assets divided among your beneficiaries and under what terms. You designate a trustee to manage the trust and uphold your wishes.
There are a number of benefits to setting up a trust, including:
Avoid Probate
One of the main reasons people put their home into a trust is to avoid probate. This can be a lengthy, stressful and expensive process, sometimes costing up to 10% of the estate’s value.
Incapacity Protection
With a revocable living trust, you’ll protect your home if you are unexpectedly incapacitated. If you are unable to manage your finances, another trustee can manage the trust to protect your home and other assets during this time.
Privacy
With no probate, there is no need to make your assets public with a living trust. This means only the beneficiaries you name ever see the living trust and the assets in it.
If you are interested in creating a trust or simply want to talk about the pros and cons, contact us today to set up a meeting. This is our expertise and we are happy to advise you on what works best for your individual situation.
Plus, join us on The Noon Show this Friday at 12 pm as we’ll be talking about this topic LIVE with Mike & Cindy George from The Guaranteed Home Sale Team.
