Common questions about living trust (part 2)
Ask the LDA
January 22, 2022
Is it a good idea to put my house in a trust?
The main benefit of putting your home into a trust is the ability to avoid probate. The probate process is a matter of public record, while the passing of a trust from a grantor to a beneficiary is not. Having your home in a trust can also help you avoid a multi-state probate process.
Do you pay taxes on a living trust?
Revocable trusts are the simplest of all trust arrangements from an income tax standpoint. Any income generated by a revocable trust is taxable to the trust's creator (who is often also referred to as a settlor, trustor, or grantor) during the trust creator's lifetime.
Can you live in a house owned by a trust?
There is no prohibition against you living in a house that is going through the probate process. However, when the deceased individual owns the home in their own name exclusively, the estate will go through probate. Unless the home was transferred into a trust, the home will go through probate as part of the estate.
Who should not have a living trust?
Persons who do not have significant assets (less than $166,000) and have very simple estate plans do not need a living trust. Anyone who believes that court supervision over the administration of his or her estate would be beneficial should not have a living trust.
Who owns the property in a trust?
The trustee controls the assets and property held in a trust on behalf of the grantor and the trust beneficiaries. In a revocable trust, the grantor acts as a trustee and retains control of the assets during their lifetime, meaning they can make any changes at their discretion.
Diana Wade is a Legal Document Assistant. She can be reached at (661) 821-0494 or email@example.com. Diana is not an attorney; she can only provide self-help services at your specific direction. Kern County LDA #185, ex 4/11/23.