What Is A Living Trust On A House?

What Is A Living Trust On A House - How Much Does It Cost To Put Your House In A Trust - Who Needs A Trust Instead Of A Will For A House

What is a living trust on a house? 

In this article, you’ll learn about: 

  • what a living trust for a house is
  • how much does a living trust cost 
  • how much it cost to put a house in a trust
  • the difference between a will and a living trust
  • who needs a living trust instead of a will
  • who owns the property in a living trust

Let’s dig in. 

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What Is A Living Trust On A House?

A living trust on a house is a legal tool people use to manage their property. 

When you put your house in a living trust:

  • You create a trust and move the house’s ownership to it.
  • Even though the trust owns the house, you still control it. You can live in it, sell it, or make other decisions.
  • You pick someone (a successor trustee) to handle the house if you die or can’t make decisions.
  • When you die, the house goes to the people you choose without going through the public court process.
  • You can change or end the trust whenever you want during your life.

A revocable living trust gives you control over your house while making things simpler for your loved ones in the future.

A living trust does several things for a house:

  • Avoids Probate: When the owner dies, the house doesn’t have to go through the public and often lengthy court process called probate.
  • Maintains Privacy: The details of the trust and the house remain private, unlike probate which is public.
  • Ensures Control: Even after the house is in the trust, the owner can still live in, sell, or use the property as they wish.
  • Facilitates Transfer: Upon the owner’s death, the house is transferred to the designated beneficiaries without court involvement.
  • Protection: If the owner becomes unable to make decisions, a chosen person (successor trustee) can handle the property matters.
  • Flexibility: The owner can change or cancel the trust any time during their life.

Read More: How Much Does A Living Trust Cost?

How Much Does It Cost To Put Your House In A Trust?

On average, it costs $3,000 to put your house in a trust.

Depending on the complexity of the estate, it costs between $1,000 – $5,000 to put your house in a trust. 

Putting a house in a trust is a way of managing and protecting your property, often for estate planning purposes. 

Read More: How Much Does It Cost To Put Your House In A Trust?

Difference Between Will And Living Trust For A House

Both a will and a living trust can dictate what happens to a house after the owner’s death, but they operate differently. 

Let’s look at a comparison of a will vs living trust on a house. 

Getting a will for a house:

  • Probate: A house mentioned in a will usually must go through probate, a public court process, before it’s passed to heirs.
  • Timing: The transfer of the house can be delayed due to the probate process.
  • Public Record: Wills become public records once submitted to probate, meaning the details of the property and its distribution can be accessed by anyone.
  • No Incapacity Provisions: Wills only cover what happens after death. If the owner becomes incapacitated, the will does not provide guidance on managing the house.
  • Changes: Can be updated or modified as long as the person is mentally competent.

Getting a living trust for a house:

  • Avoids Probate: A house in a living trust avoids the probate process, allowing a faster and more direct transfer to beneficiaries.
  • Private: The details of a living trust, including the house, remain private, away from public eyes.
  • Continued Control: The owner, acting as the trustee, retains control over the house. They can sell, rent, or live in it.
  • Provisions for Incapacity: If the owner becomes unable to make decisions, a pre-designated person (successor trustee) can manage the house without court intervention.
  • Flexibility: A living trust can be modified or revoked by the owner during their lifetime.

In summary, both a will and a living trust can determine the future of a house.

But a living trust offers the benefits of:

  • privacy
  • quicker asset transfer
  • provisions for incapacity

Read More: How To Make A Living Trust Without A Lawyer

Who Needs A Trust Instead Of A Will For A House?

If you own a house, you might wonder if a will or a trust is best for passing it on. 

Here’s when a living trust for a house might be the right choice for you:

  • Skip the Court: Trusts let houses pass to heirs without court involvement. This can speed things up.
  • Keep It Private: Wills can become public. If you want the details of your house to stay private, choose a trust.
  • Houses in Multiple States: If you own homes in different places, a trust can make the transfer smoother.
  • If You Get Sick: Trusts have plans for who manages your house if you can’t.
  • Blended Families: A trust can clearly specify who gets the house, be it your current spouse or kids from an earlier relationship.
  • Control Over the House’s Future: Trusts can set rules, like ensuring a family home isn’t sold for a certain number of years.

In essence, a living trust for a house is your best bet if:

  • you’re aiming for more control and privacy when passing on your house
  • you have unique family or property situations

Read More: Tax Implications Of Transferring Property Into A Trust

What Is The Downside To A Living Trust?

A living trust offers benefits for managing a house, but it also has some drawbacks. 

Here are the downsides of a living trust on a house:

  • Initial Costs: Setting up a trust is often more expensive than writing a simple will.
  • Management Time: Transferring a house to a trust requires paperwork. You’ll need a new property deed.
  • Complexity: Trusts can be confusing. It’s essential to understand the rules to avoid mistakes.
  • Maintenance: Trusts may need updates or adjustments over time, especially if you buy or sell properties.
  • Not All-Inclusive: Even with a trust, you might still need a will to cover assets not included in the trust.
  • No Tax Breaks: For most people, a living trust doesn’t offer extra tax benefits compared to owning the house directly.

In simple terms, a living trust provides more control and privacy for a house.

But it also comes with higher costs and can be complex to manage.

Read More: Does Your House Have To Be Paid Off To Put It In A Trust

Who Owns The Property In A Revocable Trust?

When you put a house in a revocable living trust, the trust legally owns the house

However, the person who created the trust, often called the grantor or settlor, typically controls and manages the house. 

This means while the trust holds the title, the grantor can still live in, sell, or rent out the house just like before.

If they decide, they can also take the house out of the trust. 

In essence, the house is in the trust’s name, but the grantor holds the power.

Read More: What Happens To A House In A Trust After Death?

Get A Living Trust For Your House

If you want to put your house into a living trust, fill out the form below. 

At The Hive Law, we understand the importance of:

  • protecting your hard-earned assets 
  • ensuring your family’s future
  • not losing everything to creditors and lawsuits
  • properly (and legally) distributing assets 

We only accommodate a limited number of clients each month.

So don’t miss your opportunity to work with our trust fund lawyers.

Benefits of our trust services:

  • Tailored solutions to fit your unique needs and goals
  • Expert guidance in navigating complex tax and legal matters
  • Preservation of your wealth for future generations
  • Streamlined asset distribution according to your wishes

Avoid the pitfalls of inadequate estate planning strategies:

  • Creditors seizing your assets
  • Lawsuits jeopardizing your family’s financial security
  • Family disputes over inheritance
  • Costly and time-consuming probate processes

Talk soon.

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