When Should I Put My Home in a Trust?

[@javonne2561]

Pros and cons of setting up the trust in advance, then buying the house with it and get it titled with trust name from the beginning?

[@chipott3705]

Was under the impression that if home is owned by a trust, if home is sold, it would not get the $500,000 (per couple) tax free gain exemption. Am I wrong?

[@anatolylukyanov6072]

Thank you for a very informative presentation. Does putting home in a trust affects the ability to use home office deduction?

[@rebelandatrader]

Just started my trust today; will put my personal property in it as soon as possible. Questions: If the trust owns the property, are they then responsible for maintenance, property taxes, etc? Secondly, can I rent the property from the trust to myself (even though I'm the grantor), and why should or shouldnt I do this? (the property is mortgaged)

[@bethellaw]

Hello! Thank you for the fun questions! Regarding maintenance, property taxes, etc., the trust is responsible for any costs associated with assets held within the trust. More precisely, the trustee of the trust is responsible for staying current on any bills and expenses associated with trust assets and must use trust assets to cover said costs. Regarding renting the property to yourself, you can, but there is likely no reason to. This will all depend on the state in which you live and the terms of the trust itself, but here in California, if you had a revocable living trust in which you are the grantor, trustee and current beneficiary, then renting the property would mean you paying yourself - I.e., a transfer of funds from a personal bank account to a trust bank account, which has the same effect of moving money from one account in your name to another account in your name. If, however, you wanted to go down an asset protection route, then you're going to have to have a 3rd party in the mix (likely as the trustee) and not be allowed to have the money paid to the trust come back to you (it could be considered self-dealing). This is likely because you would be creating an irrevocable trust - a separate entity from yourself in essence. However, while doing so may shelter assets from creditors to an extent, the money is no longer within your control and will be subject to taxes on its own tax return at a higher tax rate than individuals. Therefore, I would not generally recommend attempting to rent the house from your own trust. However, as mentioned above, this is all going to depend on your state and the trust terms itself.

[@robertbuck7186]

Shouldn't the lawyers tell you or do something about registering or informing the county that the house is "in trust" because I have noticed that when you look up a home on a county website where the records are stored about the deeds of houses some say " in trust" ... others say LLC or something like that and others have no definition except maybe the owners names of that house that sits on a specific block and lot number.... and my question is that if they do not or are not entered into or updated with the county could that mean that the county or any other entity such as bill collectors for nursing homes can claim the right to seize the property foreclose on it with a lein on it and sell it in order to repay any outstanding debts such as the debts that can possibly be incurred from unpaid nursing home fees and bills?

[@jeff8278]

Doesn't most real property transfer to heirs outside of probate? If so, no need for a trust, right?

[@Howiefm28496]

If I own multiple properties, would it be a better idea to put each property into its own trust?

[@40options19]

Your videos are very informative. Ive been writing my trust myself and would love to consult with you. Ready to scheduled and pay for such ... looking forward to hearing back from you.

[@bethellaw]

Hello! We offer free consultations so you are welcome to reach out by either calling us directly or going to our website: www.bethellaw.com/contact We look forward to hearing from you!

[@odasor92]

Thank you for the video! Can you put a home in trust even if you still have a mortgage?

[@bethellaw]

Hello David, Thank you! Yes, you can put your home in trust even where you still owe on the mortgage for the property. There are going to be some exceptions though. However, in the overwhelming majority of circumstances, we're talking about the owner transferring the property to their own revocable trust or beneficiaries inheriting a property from a trust where there is still a mortgage on it. In either case the loan will not be accelerated.

[@HyperspaceHoliday]

Does ownership through a trust affect property tax rates? Due to property price gains, if I had to transfer my home now my property tax reset would double my annual taxes compared with my current maximum annual 3% cap

[@bethellaw]

Generally, no, but conditions apply. Firstly, property tax regulations are state-specific, meaning that each state will have their own rules and regulations to account for. However, a general rule of thumb is that so long as the property is transferred by the grantor (the owner moving the property) to the grantor's trust wherein the grantor remains the beneficial owner of the property, then this should not be considered a transfer of the property, thus triggering a reassessment of the property. The easy example is I transfer my house to my trust, where I'm the trustee and the lifetime beneficiary, meaning the trust works for my benefit during my lifetime. Another example would be me transferring my house to my trust where I'm still the lifetime beneficiary, but my son is the trustee. Even though my son manages the trust, the trust owns the property, and the trust operates for my benefit, thus I retained a beneficial interest in the property. Contrast all this with a case where I create a trust, transfer my property to the trust, my son is the lifetime beneficiary of the trust, but I retain a life estate in the property. That would likely be considered a transfer from parent to child even though I have the right to live on the property until my death. Again, all this is state-specific so be sure to speak with an attorney in your state for a complete picture.

[@jackiemansfield8325]

If I want donate my estate to Animal charity when I pass would a trust be the right choice?

[@stevenhintz5508]

I want to put our home into an irrevocable trust for asset protection purposes. I would like to have my daughter as the trustee and beneficiary. Is this a good or bad idea? In Wisconsin if that matters. Thanks

[@bethellaw]

Hello! Thank you for your question. Yes, the state matters significantly. Trust and asset protection law is all state specific so I can't give you too much guidance on Wisconsin in particular. A potential route you could discuss with a Wisconsin attorney is granting your property to an irrevocable trust you create, have your daughter be the trustee of said trust, but retain a life estate for the property (thus allowing you to live in the property for the rest of your life at your own expense), and not have the trust distribute its assets until after your death. This, of course, would mean you no longer have total control over the property, or any assets produced therefrom (whether it be rental income or sales proceeds). The assets held in trust cannot come back to you (this would be self-dealing and will likely break any asset protection you were planning for in the first place). Lastly, because you are creating an irrevocable trust, that trust will be considered a separate entity from you and your daughter and have to file its own tax return so long as it retains assets. This may not always be the case but is something to consider.

[@producer1235]

What if you have a will? Is a trust still beneficial?

[@angellee9307]

Right now

[@rogerbec5766]

I hear attorneys shy away from getting involved with doing Living Trusts. Why is that? Also, they won't say why they don't do them. fyi

[@nidasalvador9705]

Thank u

[@bethellaw]

You're welcome!

[@thedonlikecheadleior9740]

Arizona caught a stray.

[@mathinabeevi5993]

Please help