It’s not always easy to think about the later chapters in life, but taking the time to plan can bring lasting peace of mind and make things easier for those we care about most. We wanted to share some insight that may be helpful if you’ve been thinking about ways to safeguard your property.
For many homeowners, a home represents both financial security and the story of years spent building a life within its walls. Establishing a living trust is one of the most effective ways to ensure your home and assets are thoughtfully protected for the years ahead.
Key Benefits
Avoid Probate
With a properly funded trust, your home can pass directly to the people you’ve chosen, without the long and often stressful probate process. Probate can take months and requires court oversight, but a trust allows your loved ones to avoid that entirely and move forward with less hurdles and uncertainty during an already emotional time.
Keep It Private
Probate is public record, meaning anyone can see the details of your estate. A trust helps keep your personal and financial information confidential, protecting your privacy and that of your family.
Plan for the Unexpected
If life ever takes an unexpected turn, a trust allows someone you’ve chosen to step in immediately to manage or sell your property. This helps your loved ones avoid the time, cost, and stress of going through a court-appointed conservatorship.
Stay in Control
A living trust gives you the flexibility to adapt as life changes. You can sell, refinance, or make updates whenever needed, all while keeping your intentions clearly outlined and protected.
Common Misconceptions
“I don’t need a Trust because I have a will.”
A will directs who gets your assets, but it still goes through probate. A trust avoids that process altogether and allows assets to transfer directly to your beneficiaries. Creating space for those grieving to focus their efforts on what matters most, rather than the legal system.
“Trusts are only for the ultra-wealthy.”
Trusts are valuable tools for everyday homeowners. Especially here in California, where property values are significant, even a modest home can benefit from the protections a trust provides by helping families avoid probate and simplifying the transfer process.
“If my home is in a trust, I can’t refinance.”
You can. Some lenders may temporarily require you to move the property out of the trust during refinancing, then place it back in afterward, but this is routine and allowed by most institutions.
“Once I make a trust, my home is automatically in it.”
Creating a trust is only the first step, the property must also be retitled into the name of the trust. This is done by recording a new deed with the county showing the trust as the owner. Without this step, the property could still go through probate even though a trust exists.
Trusted Resource
If you’ve been considering creating a Trust, we highly recommend David Lee, an Estate Planning and Trust attorney at Sweeney, Mason, LLP in Los Gatos. His expertise, professionalism, and approachable communication style make him an exceptional resource for anyone navigating estate planning.
We’d be happy to introduce you to David to help start the conversation about how estate planning can fit into your broader real estate strategy.
