Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-15-2013, 04:28 PM
Junior Member
 
Join Date: Mar 2013
Posts: 7
Estate in Trust?

Hi everyone,

I have a question about trusts. If let's say our house go into a trust, I know that we lose control over the asset and that we can't sell and refinance as we like. However, who controls the trust? Is it a government thing? Also, when we pass away, does the house go to my children and is no longer in a trust? Once it is no longer in a trust, will my children has full control over the house?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-16-2013, 03:04 AM
Moderator
 
Join Date: Oct 2010
Posts: 4,836
“I have a question about trusts. If let's say our house go into a trust, I know that we lose control over the asset and that we can't sell and refinance as we like. “===========>When property is held in trust it is no longer owned by you personally. In some states, the trust owns the property, and in other states, the trustee owns the property on behalf of the trust. Either way, you do not personally own the property.There may be some reasons why it might be smart to put your house into a living trust. When you do so, you essentially donate the house to the trust. You must create a transaction that is similar to a sales transaction, only there is no purchase price and the "purchaser" is your trust. When you are finished with the transaction, the house will belong to your trust, not you individually. One of the biggest advantages of putting property into a trust is that the trust avoids probate when you die. Other advantages include protecting the property from creditors, and saving estate taxes on the property when you die. Most married couples own their homes together as "joint tenants." This is a legal term that means if either of you die, the other person automatically owns the entire home without having to go through probate or pay estate taxes. However, what happens if you and your spouse are in a car accident and you die at the same time? If you don't have your home in a trust, your home ends up in your estates and has to go through probate and possibly, estate taxes will have to be paid on it--which is bad news for your children. But if you put the home in a trust, you can plan ahead for this unfortunate event by explaining in the trust document what happens to the home if you and your spouse die at the same time.



“However, who controls the trust? Is it a government thing? Also, when we pass away, does the house go to my children and is no longer in a trust? Once it is no longer in a trust, will my children has full control over the house?===========>As mentioned above, If your child(ren) has/have the right to withdraw his or her entire trust after reaching a specified age, he or she is free to dispose of those assets any way he or she desires. If your child decides to put the money in joint tenancy with his or her spouse and predeceases the spouse, the assets will go to the spouse as a surviving joint tenant.This should not be problematic because the spouse will, in all likelihood, take care of any children (your grandchildren) she has with your deceased child. But if the spouse remarries, puts all the trust’s property in joint tenancy with a new spouse, and then predeceases that spouse, all the assets would pass to the new spouse and your grandchildren would receive nothing.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Irrevocable Income Only Trust - Real Estate Property Cost Basis/Distributions Question. PART 2 jdcaro55 Trusts and Gift Tax Returns 0 02-19-2013 06:41 PM
Irrevocable Income Only Trust - Real Estate Property Cost Basis/Distributions Question. jdcaro55 Trusts and Gift Tax Returns 5 02-01-2013 01:58 PM
IRS Finalizes Automatic Five-Month Extension for Partnership, Trust and Estate Tax Returns! TaxGuru Limited Liability Company 0 06-28-2011 10:21 AM
Trust principal distributed free from trust taxnewbie Trusts and Gift Tax Returns 0 03-12-2009 12:44 PM
Deed of Trust "Leasehold Estate" Jaduexclens Rental Real-Estate 0 02-24-2008 02:23 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning