irrevocable trust
We are considering putting our house in an irrevocable trust for our daughters. Purpose
to protect so they have our house if we run into financial difficulty..
Any thoughts?
Terry Says
That’s a pretty drastic step. Are you in imminent danger of an IRS seizure, or a mortgage default? Or a bankruptcy? In those cases, a conveyance in advance would be considered an attempt to defraud — and it wouldn’t hold up.
If this is just general queasiness about your financial future, I suggest you explore other options — perhaps selling your home and downsizing. Or consider a Reverse Mortgage, as long as you can continue to pay the taxes and insurance and maintenance.
It’s hard to give advice blindly– but you don’t want to be at the mercy of your children, nor give them the responsibility of paying taxes and insurance, which they must do as trustees in order for this transaction to hold up.
