Why You Should Consider Putting Your Home in a Trust if You Live in California
When it comes to estate planning in California, one of the most strategic moves you can make is placing your home in a trust. This decision can offer numerous benefits, from avoiding probate to maintaining property tax advantages. Here’s why you should consider this option:
1. Avoiding Probate
One of the primary reasons to place your home in a trust is to avoid the probate process. In California, probate can be time-consuming and costly, often taking months or even years to settle an estate. By placing your home in a revocable living trust, you ensure that the property can be transferred to your beneficiaries without the need for probate, allowing for a smoother and more affordable transition.
2. Maintaining Property Tax Benefits
California's Proposition 13 limits the amount by which property taxes can increase each year. When you transfer your home into a revocable trust, it does not trigger a reassessment of property taxes, as long as you remain the beneficiary. This means you can maintain your current property tax rate, which is often significantly lower than the current market rate. Additionally, if the property is passed to your children, they may qualify for the parent-child exclusion under Proposition 19, preserving the Proposition 13 tax basis.
3. Privacy
A trust provides privacy that a will does not. When a will goes through probate, it becomes a public record, which means anyone can access the details of your estate. A trust, on the other hand, is a private document, and the transfer of assets through a trust does not become public record.
4. Flexibility and Control
A revocable living trust allows you to retain control over your assets during your lifetime. You can modify or revoke the trust as your circumstances or wishes change. This flexibility ensures that your estate plan can adapt to your needs over time.
5. Protecting Your Beneficiaries
By placing your home in a trust, you can set specific terms for how and when your beneficiaries receive the property. This can be particularly beneficial if you have minor children or beneficiaries who may not be financially responsible. You can ensure that the property is managed according to your wishes until your beneficiaries are ready to take ownership.
Ready to Take the First Step
At On Point Estate Law, we would love to work together to create a plan that is tailored to meet your specific goals and needs. Contact us today to learn more about putting your home into trust at (619) 273-3329, or schedule a free consultation here.
