People sometimes get revocable living trusts because they have read somewhere that they should. While that is often the case, it is important to understand the legal reasons for getting the trust and how getting one relates to other estate planning instruments.
The legal implications of holding a property in a revocable living trust are not always commonly understood even by those people who have trusts. One example of that comes from a recent Trust Advisor article “Think Twice About Changing a Revocable Trust to List Your Child as Co-Owner of a Home.”
An elderly man wrote in and said he had a revocable trust and had transferred his home into the trust. After he passes away, his son would become the beneficiary of the trust including the home. The man sought advice on how to change the title of the home now to make his son a co-owner of the home along with the trust. The article explains many reasons why that is not only unnecessary, but potentially harmful.
While it is not clear exactly why the man wanted to change the title of his home, it probably stems from a common confusion and fear of probate.
Many people hear they can avoid having their homes go through probate after they pass away if they make a child a co-owner. That is true, but usually a bad idea especially if the home is already in a trust. If a home is in a trust, then it will not have to go through probate when the current trust beneficiary passes away.
It is important to get a revocable trust from an experienced estate planning attorney who can explain to you the legal implications of the trust. If you have any questions later, you can always call the attorney and ask.
Reference: Trust Advisor (Oct. 28, 2016) “Think Twice About Changing a Revocable Trust to List Your Child as Co-Owner of a Home.”
Suggested Key Words: Trust, Estate Planning, Probate
I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.
The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!
Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.
Josh Nelson, and his staff, have been amazingly helpful to our family. The ins and outs of nursing homes, the rules and regulations that govern Medicare and Medicaid are daunting and the folks at Nelson Elder Care Law have been informative, responsive, and above all, empathetic. I cannot emphasize enough how their service has taken a weight off of our shoulders especially during a world pandemic that has targeted nursing homes across our country. I highly recommend retaining Josh and his firm!
I had a simple legal question to them that I needed answered and they very helpful in giving me the information I needed. I highly recommend them and will reach out to them if I need more advice or assistance. Thank you for taking your time to just answer a couple of questions I had!