Hi, I’m Nathan Derry with JohnHart Real Estate, and today I want to talk about a vital step in protecting your assets and your legacy: setting up a trust for your real estate. I’ve seen firsthand the confusion and heartbreak that can tear even the closest families apart when a loved one passes without having their estate in order. That’s why I recommend placing your real estate in a trust to ensure your wishes are carried out smoothly and that your family is spared unnecessary stress during an already difficult time.

What is a Trust?

A trust is a legal arrangement where a third party, known as a trustee, manages assets on behalf of the beneficiaries you name. Trusts can be revocable (allowing you to change or dissolve it while you’re alive) or irrevocable (where changes are more limited once it’s established).

When it comes to real estate, placing your property in a trust offers a range of benefits that make it a smart move for homeowners and investors alike.

Key Benefits of Placing Your Real Estate in a Trust

1. Avoids Probate: Without a trust, your estate may go through probate—a long, costly, and public legal process where the court oversees the distribution of your assets. A trust allows you to bypass probate, ensuring your real estate is transferred directly to your beneficiaries without delay or legal hurdles.

2. Maintains Privacy: Probate proceedings are public, meaning anyone can access the details of your estate. A trust keeps this information private, protecting your family’s financial matters from public scrutiny.

3. Reduces Estate Taxes: Trusts can help minimize the estate taxes that would otherwise cut into the value of the inheritance you leave behind. Depending on the type of trust, your estate may be eligible for tax benefits that reduce the overall burden on your beneficiaries.

4. Protects Your Legacy: A trust ensures that your real estate and other assets are distributed exactly as you wish. You can set conditions, like how and when your beneficiaries receive their inheritance, preventing disputes and protecting your legacy for future generations.

5. Safeguards Beneficiaries: If your beneficiaries are young, financially inexperienced, or in unstable situations (e.g., dealing with creditors or divorce), a trust offers protection. The trustee can manage the assets on their behalf, ensuring that your property is preserved and passed down according to your terms.

Steps to Place Your Real Estate in a Trust

1. Consult with an Attorney: The first step is consulting with a qualified estate planning attorney. I highly recommend contacting Attorney Damon Martin, who has extensive experience in this area and has helped many of my clients. You can reach him at (818) 646-2570.

2. Draft the Trust Document: Your attorney will help you draft the trust document, which outlines the terms of the trust, including who the trustee and beneficiaries are, how the assets should be managed, and any special conditions.

3. Transfer Your Real Estate into the Trust: Once the trust is created, you’ll need to transfer ownership of your real estate into the trust. This involves preparing a new deed to list the trust as the property owner, which is then recorded with your local government.

4. Update Related Documents: Be sure to update any related documents, such as insurance policies or titles, to reflect the trust as the new owner of the property.

5. Maintain the Trust: If it’s a revocable trust, you can make changes or amendments as your life circumstances evolve. Irrevocable trusts are more rigid, so be sure to carefully consider your long-term goals before creating one.

How a Trust Protects Your Legacy

Having your real estate in a trust can prevent family disputes, protect your assets from creditors, and ensure your wishes are honored after you pass. Sadly, I’ve seen the devastation that can occur when someone departs without a trust in place. Even the most loving families can be torn apart by confusion, disagreements, or legal battles over an estate. A trust ensures that your real estate and other assets are handled according to your exact wishes, preventing unnecessary stress for your loved ones.

Additionally, a trust allows you to pass your property to future generations in a way that’s protected from financial risks. For instance, if you’re concerned about a beneficiary squandering their inheritance or being targeted by creditors, a trust can provide oversight and protection.

If you haven’t yet set up a trust for your real estate, I strongly encourage you to take this step to protect your legacy. Attorney Damon Martin has helped many of my clients, and I trust him with all estate planning needs. Reach out to him at (818) 646-2570 to get started.

Don’t wait until it’s too late to ensure your family’s future is secure. A trust is more than a legal document—it’s a way to protect the ones you love and preserve your hard-earned assets for generations to come.

— Nathan Derry, JohnHart Real Estate

📍JohnHart Real Estate

📞(424) 303-0440

📧 nathan@jhagents.com

👨🏽‍💻 itsnathanderry.com

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