The Advantages of Placing Real Property into a Trust

If you have property that you want to pass on to a loved one, you may want to see a probate attorney about creating a trust. While you can deed real property, such as a single-family home or a farm, directly to a loved one, there are some major benefits to sealing it within a trust.

Maintain Control Over the Property

When you give property to someone, it's theirs to do with as they wish. You can give the family home to a child, but they can then sell it or demolish it as they desire. Placing a property into a trust means that you still have some measure of control over what happens to it.

You can specify that your child isn't to take control over the property until they are 18. Alternatively, you can give property to a spouse and specify that it is to go to your children when they pass; otherwise it could end up with someone that your spouse remarries. 

Avoid Hefty Tax Bills

An estate doesn't immediately transfer the trust into your loved one's property. Instead, your loved one simply has control over the trust and through the trust controls the property. This has a side effect: your loved one isn't going to have to pay any taxes on their gains, because they haven't technically had any gains. 

If your estate does allow for the property to be sold and your loved one sells the property and profits from it, on the other hand, there may be some taxes that need to be paid. There are exemptions for inheritances, but they are also capped at a certain value.

Make Your Inheritance Clear

Wills can be argued, especially if they are completed last minute or aren't documented properly. The process of creating and documenting a trust is more rigorous, which leaves very little room for doubt regarding your intention. If you feel as though your will may be disputed or that there may be complications during probate, you want to have as much documentation as possible. 

Creating a trust is a clear indication that you absolutely intend your loved one to inherit the value of the property. Moreover, it also shows that you are thinking things through and planning with presence of mind.

A trust is generally a safer, easier to control method of gifting real property to a loved one. You can learn more about the process and its benefits by contacting an attorney through resources such as http://valentineandvalentine.com.