Those who decide to use a living trust generally choose to include money, investments, and tangible assets. This usually includes any property that is owned. This allows investors to place ensure that their homes are placed in the hands they most desire with minimal cause for worry on the part of the trustees. However, many people question how a living trust works when it comes to their property.
<h3>The House is Still Yours</h3>
One of the most important questions raised by individuals considering placing their homes in trusts is whether or not the house will continue to be theirs. There are even financial experts who may make the mistake of telling their clients that homes placed in trust no longer belong to them. This is only partially true if the trustor, that is, the person holding the trust, becomes unable to handle his or her own affairs. It is at that point that the trustee begins making decisions about the home.
<h3>Court Processes are Eliminated</h3>
Perhaps the biggest advantage to placing a house in trust is eliminating probate. Instead of a lengthy court proceeding, once the trustor dies, the ownership of the house passes directly to the person named in the documents. This could be a spouse, children, other relatives or close friends, or even their alma mater. Many individuals choose to place their assets in the trust of a charity. However, it should be noted that family members who feel they are entitled to the trust can still incite a legal battle. A trust, like a will, does not completely eliminate the possibility that disgruntled heirs may fight out the ownership of assets in court.
<h3>Difference Between Trust and Will</h3>
Some may choose to use a will to distribute wealth and property upon their death. A will is less expensive than a trust. It arguably also requires fewer legal proceedings to enact. However, a will does not provide all of the protections of a trust. For instance, if a house is placed in a will, those who are given the home must go through probate before acquisition. This can take months and can also cost a significant amount of money. Likewise, a will does not account for disabilities. If an individual becomes unable to manage his or her assets, oftentimes the court will have to appoint a conservator. This may not be the most desired individual, which makes placing a home in a living trust all the more important.