Whether you already own investment property or you are considering getting into the business, it is important to consider issues such as how you want to integrate it into your estate plan. Putting property into a revocable trust can provide several benefits. However, it is essential to have an experienced living trusts lawyer assess your specific circumstances and advise you on the most effective option to protect your assets and pass them on to your heirs.
What is a Revocable Trust?
A trust is a legal arrangement in which a trustee holds assets for a beneficiary. Trusts can protect against creditors, help beneficiaries avoid probate, and allow the grantor (creator) of the trust to dictate the terms of an inheritance. A revocable trust enables the grantor to act as trustee and beneficiary while they are alive, and property can be added and removed as they see fit. Upon their death, the trust is managed by an appointed trustee. If you are considering a trust for rental properties and other assets, an estate planning lawyer can ensure it is set up properly.
Why Use a Revocable Trust for Investment Properties
A trust provides a layer of anonymity that can protect against lawsuits and keep your estate confidential. If there are multiple investors in a property, a trust allows you to define specific ownership interests, which can help everyone involved avoid hassles down the road. In this type of situation, seeking the counsel of a real estate lawyer and contracts lawyer is critical to ensuring your interests and the interests of your beneficiaries are fully protected.
Because a trust bypasses probate, it enables your loved ones to save time and money when it comes to settling your estate and gives beneficiaries of the trust access to your assets immediately upon your death. Probate can take up to two years in Pennsylvania. If you have a complex estate with a significant amount of assets or someone contests a will or estate, it can take longer. A trust can help make a difficult time easier for your family and minimize conflict when settling an estate. In some cases, it can also help to minimize the amount of estate taxes they may owe.
How a Trust Protects Your Interests
Should you become incapacitated or unable to manage your own finances, a secondary trustee can manage your trust and perform duties such as paying property taxes and insurance. A trustee has a legal obligation to look out for your best interests, so a living revocable trust also protects your assets from those with nefarious intentions.
How a Wills and Trusts Lawyer Can Help
Our estate planning lawyers, wills and trusts attorneys, and Pennsylvania real estate lawyers work collaboratively to help clients find personalized solutions that meet their needs. Our team has extensive experience handling all types of real estate transactions and estate planning issues and is dedicated to providing top-notch legal services to all our clients.