There may be many benefits to putting your Florida home into a trust as opposed to keeping it in your estate. For example, any assets that are placed in a trust are considered to be held outside of your estate. This may make it easier to qualify for government programs such as Medicaid. It may also ensure that your surviving family members won’t have to worry about liquidating assets to pay state or federal estate taxes.
Avoid probate by placing a home into a trust
Probate only applies to property that is held in your estate at the time of your death. Therefore, keeping a home outside of that estate typically allows it to be transferred to a beneficiary immediately after you pass. Alternatively, the trust can stipulate that the home be sold to the highest bidder, donated to a charity or simply kept off of the open market for a certain period of time.
Protect your home by putting it into an irrevocable trust
Any asset that is part of an irrevocable trust cannot be seized by creditors. Furthermore, it cannot be taken by your spouse as part of a divorce settlement. Therefore, it’s almost certain that it will still be in your possession when it comes time to transfer it to a child, grandchild or another family member.
It is important to note that you lose control over a principal residence once you title it in the trust’s name even if you retain the ability to live in it. An estate planning attorney will likely be able to talk more about the differences between revocable and irrevocable trusts.
An attorney may be able to help you create an estate plan that meets your current and future needs. For instance, this person might help with the process of properly titling an asset in a trust’s name. If this doesn’t happen, your home might revert back to your estate. A legal adviser might also help you create a new trust or alter one that already exists.