For many people in Connecticut, the house is among the most important assets to consider when it comes to estate planning. Deciding on the best way to manage the house can be complicated, but placing it in a living trust is one of the most common options.
Living Trusts and Real Estate
A living trust is a trust that is written and takes effect while the person is still alive. That means their house will be owned by the trust before they pass away. The advantage of this is that it can take a long time for the legal processing of a will to be complete, so even if the house is specified in a will and it is clear what should happen to it, it might be years before the heirs can take the title. If the will is contested, this will take even longer.
A living trust has other uses as well. For example, it is possible to use a living trust to create divorce protections around the house, or to protect it from being sold. Depending on whether the trust is revocable or non-revocable, the menu of options for designing the trust varies. Trusts are a popular tool for estate planning because they provide a flexible framework for accomplishing a lot of different estate goals. They are also less expensive to set up for people with fewer assets, making them highly accessible.
Protecting real estate with a living trust is not for every family. But for many, it is a useful way to avoid getting tangled up in probate court and provides extra protection for the house.