Today we’re here with Amanda Phillips, the newest member of the Palermo Properties Team,
to talk about the subject of preparing trusts.
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Our newest team member, Amanda Phillips, joined us recently to talk a little bit about trusts and the probate process.
If you don’t have a trust, your estate will go through what’s called the probate process. This essentially means that the court will take your possessions and assets and transfer them to the name of your beneficiaries.
Probate is a long process. It can take well over a year, which means that your loved ones are sitting around with your property, but they haven’t yet acquired it. If you have fees or debts that you left them, they can’t pay those until they can sell your house. It’s also an expensive process. Anywhere from 3% to 7% of the estate will go toward paying the probate costs and attorney fees.
A trust takes all your assets and property and puts it in the name of the trust; that helps you avoid the probate process because the property in the trust is already being held by the trust. If you’re going through the steps of acquiring assets over your lifetime, that means you’re doing it for your family when you pass. The best thing you can do is take steps to prepare a trust to make it easier for them when you’re gone.
The best thing you can do is take steps to prepare a trust to make it easier for your family when you’re gone.
Two of the main triggers for preparing or amending a trust are when you buy and sell a house because a trust must be funded. That’s why you need to put your property in the name of the trust. When you’re buying property, that’s the time to prepare your trust. When you’re selling property, that’s when you need to make sure that that property is no longer in your trust and that your new one is.
The information Amanda provided regarding trusts is really valuable, and we’re so proud to have her aboard. If you need any more information about trusts, an attorney, or an experienced Realtor, please feel free to reach out and contact us.