Dedicated Attorney Assisting Arroyo Grande Clients With Their Real Estate Trust Transfers
One of the key reasons to create a trust is to fund it with your assets—and your home and other real estate you own usually comprise your biggest and most valuable assets. (If you own multiple homes outside California, you should definitely put them in your trust as well in order to avoid separate probates in those states.)
The Benefits of Putting Your Real Estate in Trust
Once you designate yourself as a trustee, the advantages of transferring your real estate into trust will be tangible. You’ll be able to avoid both a required property tax reassessment—and, most likely, having to pay transfer taxes—when you transfer your property. You’ll still be able to deduct mortgage interest from your income taxes after you transfer, and you won’t need to change the registration of insurance policies you have on the properties.
Further, you’ll be able to exclude up to $250,000 of profit from your taxable income when you sell your principal home, even if the trust owns the home—and if you co-own your house with someone else, such as your spouse, this exclusion is doubled to $500,000. You’ll also be able to retain homestead rights—which protect your equity interest in your home—after you transfer your property to your trust.
Doug is Here to Help With Your Transfer
When you place your real estate into a trust with the help of Douglas M. Buchanan Attorney at Law, you can be sure that all new deeds and other paperwork he draws up in the name of the trust will be backed by over 20 years of deep and broad experience in all types of estate planning.
Real Estate Trust Planning FAQ
If I sell my home while it’s in trust, where does the money go?
If your trustee sells your home for you, the proceeds of the sale must remain in the trust. If the trust document allows, you can use those proceeds to purchase a new home for you, but that home will still be owned by the trust.
Who actually owns property that I buy in a trust?
When you buy property in a trust, you hold the property for both your own benefit and the benefit of your named successor. You become the trustee of the property, and upon your death, your named successor becomes the trustee.