During the estate planning process, you will have to make many important decisions. Most people who are going through this process for the first time think primarily about who they want to receive the asset after they pass. Creating an estate plan is more complex. Each type of asset should be evaluated to allow you to make the best possible choices for your needs. Rental properties are a prime example. Your attorney may suggest using a living trust for this asset. There are several advantages to this valuable estate planning tool.
Five Advantages to Having Your Trust Be the Owner of a Rental Property
Are you wondering why you should consider using a trust to hold the title of your rental property? The following are five benefits:
- If you become incapacitated or pass away, your successor trustee is able to step in quickly and efficiently in order to take care of the management of the property.
- During your lifetime, you will maintain control over the asset. You will also be able to continue to use all of the income from the property as well.
- When you pass away, the asset will not have to go through the probate administration process in most cases. Assets held in trust typically do not have to pass through this costly and time-intensive process.
- If your estate is sizeable and you are married, the asset can be used as part of a more complex trust plan that can minimize taxes after you pass away.
- By using a living trust, you have more control over how the asset will pass to your beneficiaries. Leaving the asset to a beneficiary under your will often requires that it simply be transferred over—in a relatively short time—following your death. Your trust, on the other hand, allows you to maintain control over the asset even after you are gone. You can hold the property in the trust and gradually give up ownership or control to your chosen beneficiary. You can even hold it in the trust for an extended period of time and pass it to a later generation at the end of the trust. You can also carve out specific instructions for dealing with the asset as you see fit.
When you are ready to take the next step towards creating an estate plan that addresses your rental property and other assets, it is important to contact an experienced professional for guidance. The attorneys at the Law Office of James F. Roberts & Associates APC are here to help—send us an email today!