Client: We Must Protect This House
Once you have settled into your home, secured home insurance, and set up an alarm system, your job of protecting your home isn't done. For most people, their house is the largest asset they will ever own. In the event of your death, a last will and testament may not be enough to ensure your property is transferred as you would wish. And often, with no trust in place, your assets will end up in probate. This means your family will need to spend time and thousands of dollars in probate court.
It is important to understand the difference between a Will and a Trust.
Will: A will is a document that provides guardianship for children under the age of 18. Assets in excess of $100k and/or property you bequeath through a will must go through probate. This can be a long and expensive process at a time when your family does not need the added burden or financial strain.
Trust: A trust is a legal arrangement in which you can place your money, property, and other assets to be accessed by your future heirs. Your trust can also incorporate directions for when and how your beneficiaries will receive their assets. For example, you can elect for your children to receive a certain portion of their inheritance at the time of your death and the remainder at a later date.
A major misconception is that a trust is just for rich people. In fact, anyone that owns property or has assets of $100,000 or more needs a trust. In order to provide for a smooth and cost-effective transition of your assets to your loved ones upon your passing, a well drafted estate plan is designed with two objectives in mind:
to avoid the costs and delays associated with probate court, and
to minimize estate taxes.
In order for your heirs to avoid probate court upon your death, your house and all other assets that don't have direct beneficiaries should be held in trust. Ownership of your property can transfer quicker and with significantly less hassle when conveyed through a trust. A second misconception is that estate plans are just for married couples. In fact, it becomes harder to prove in probate court that someone is the rightful heir without a known familial tie such as marriage or parenthood.
The David Frank Law Group has developed a simple process for estate planning. We make the process easy to understand while taking up a minimal amount of your time. If you are interested in learning more about protecting your home and assets, please reach out to Dana@frankesq.com. She will set up a free consultation with an attorney from our estate planning team. After that call, you will receive a questionnaire to help us gather all the necessary information. Next, you will be sent a draft of your estate plan. Once approved, we will meet to execute the documents. You will leave that day with your estate plan in hand and instructions on how to put assets into your new trust.
Protect your home and gain peace of mind.