Why You Should Have Your Home in a Trust

Nov 30

This topic may be sensitive or even uncomfortable to read about because nobody really wants to think about the death of a loved one (like a parent). Yet, it’s so important to be prepared and have a plan so your loved one’s wishes can actually take place as they desire.

It's essential to have conversations about estate planning, particularly when it comes to property inheritance. Why? Well, let's dive in because, besides the obvious, there are some crucial reasons you'll want your loved ones, particularly your parents, to have a will or a trust in place for their home.

4 Reasons to Ensure Your (and Your Parents) Homes Are in Trusts

1. Speed in Asset Distribution

Time is of the essence when it comes to transferring assets after someone's death. Without a will or a trust, properties must go through probate—a legal process to authenticate a will, if there is one, and settle an estate. This process can take months or even years, during which the property sits in limbo. Heirs are unable to sell, rent, or even renovate it in some cases.

This can lead to:

an erosion of the value of the property,
create a problem with squatters entering the home, and
allow interest, penalties, and fees to accrue while the property goes through the probate process.

A trust can expedite this process, allowing assets to be distributed more efficiently.

2. Protection for Heirs Who are Minor Children

For those with relatives who are minors who might inherit a property, having a will or a trust is doubly important. These legal documents enable the appointment of a trusted adult to manage the property until the children come of age. This arrangement ensures that the property is handled in a way that serves the best interests of those who are too young to manage it themselves.

3. Privacy and Control

When a person dies without a trust, their estate — including all financial details and assets — becomes a matter of public record. This can invite undue scrutiny and even fraud. A trust allows you to keep your financial affairs private. Additionally, trusts provide you with more control over the disposition of your estate, ensuring that your wishes are carried out without external interference.

4. Long-Term Planning and Legacy Preservation

A well-structured will or trust can do more than just allocate assets. It can dictate exactly how you want your property to be used or disposed of. This can be especially useful for long-term planning, allowing your property to become a family legacy that can benefit multiple generations. Whether it's maintaining a family home or transforming it into an income-generating asset, a will or trust lets you lay out your vision clearly.

If you've ever found yourself pondering what will happen to your parents' estate (or your own, for that matter) after they (or you) are gone, consider this your sign – now is the time to have these important conversations and take proper steps to be prepared. Setting up a will or a trust isn't just a bureaucratic task. It's a crucial step in securing the future and protecting what matters most to a family. So, for those of you silently wondering about your potential inheritance, don't just sit there — speak to your parents about their estate planning today. Don’t wait around to plan for your own estate, either.

Your future self, and potentially even your future generations, will thank you.

Brent Edwards (aka Brent the Broker) is a residential real estate agent and Realtor in San Diego, CA who helps clients buy and sell homes in San Diego, California and all surrounding areas. Brent is a highly-recommended Realtor in San Diego by family, friends and past clients. Call Brent today at 619-550-8070 if you have any questions about real estate in San Diego or you'd like to buy or sell a home.