Living Trust
Hi Terry, we enjoy hearing you on WGN radio. We will be retiring next year and will be selling our home and downsizing to a smaller home. We have a Will, is it advisable to also have a Living Trust? We understand that it helps our children avoid probate with our home if we both pass or become disabled? Could we also put them on the deed of our new home? What do you advise?
Terry Says
It’s time to update your “estate plan.” And, while you’re at it, turn your simple will into a Revocable Living Trust. Then BE SURE to retitle your major assets like your house and savings accounts into the name of the trust. Or else, the trust does you no good! Read this article for details. there is no tax consequence to renaming these assets.
Do not add your children’s names to the title of your home. That will cause all kinds of tax issues. And be sure to check the beneficiaries of all life insurance policies are IRAs or other retirement accounts. Those pass OUTSIDE the estate plan, directly to the beneficiary.
One more thing — get a competent estate planning attorney in your state. Your bank might recommend one.