A common misconception about estate plans exists that perpetuates the notion only the rich and elderly need to create them. However, experts continue to come forward, insisting that estate plans can benefit anyone.
In particular, this holds true for anyone who owns the property. As you now fall into that category with a home purchase, it is important to know more about estate planning and trusts.
Who needs a trust?
Forbes asks the question: should homebuyers who recently picked up their first property also draft up an estate plan? The answer: yes. If you already have an estate plan, you can simply review it and make the necessary changes to accommodate your new purchase.
If you do not, then you should certainly consider establishing one. In particular, you may want to start a trust so you can place your house in it. Generally speaking, experts say you do not need a trust if you have less than $150,000 in total assets or do not own property, which no longer applies once you have a house.
The benefits of avoiding probate
Trusts can benefit you and your loved ones in many ways. In particular, placing your house in a trust will allow any beneficiaries to skip the probate process, which often takes a minimum of two years and can cost money and create undue stress. It may also help them avoid estate taxes, which can take a large financial toll.
If you want the extra security that comes with a trust, you can speak to legal help. They can help you create an estate plan that suits your assets and needs best.