If you own a home in the state of California, it may be in your best interest to put it in a trust. Doing so will keep it outside of your estate, which may allow you to retain greater control of it during your lifetime and after your passing. Take a look at some of the potential benefits of this action.
You’re less likely to lose the house in a divorce
Typically, only assets that are held in a marital estate are subject to property division rules in a divorce. If you bought the home before marrying your spouse, placing it in a trust may allow you to retain control of it after separating from your spouse. It’s also worth noting that holding assets outside of an estate can make it harder for creditors to take control of them.
Someone will look after the property if you cannot
One of the key benefits of creating a trust is that you get to appoint a person to manage it on your behalf. This can be useful in the event that you become incapacitated for any reason. After you pass, the trustee will work to ensure that assets are transferred to a beneficiary, sold or otherwise overseen according to your instructions.
Gifting assets may be easier when they’re part of a trust
Placing a home in an irrevocable trust may be an effective estate planning decision if you plan to gift it to a friend, family member or charitable organization during your lifetime. As trust assets do not need to go through probate, they can be gifted after your death with little input from others who may object to your decision to do so.
If you want to exert greater control of an asset such as a principal residence, it may be a good idea to place it in a trust. Doing so may allow you to sell, transfer or otherwise do what you want with the home with minimal interference from outside parties.