Removing a house from your trust
Creating an estate plan is an important goal for everyone. For those individuals who are just starting out in their career, their estate plan will consist of a few simple documents: a will, a medical durable power of attorney as well as a financial POA, and a HIPAA waiver.
For those individuals with moderate assets to individuals who are moderately wealthy, more complicated estate planning may be needed to achieve two important goals: planning for the distribution of their assets after their death as well as saving on taxes. Establishing a trust as part of your estate plan is a great option to include, especially if you have children.
There are many different types of trusts, but all can be categorized as revocable or irrevocable. Revocable trusts can be modified, amended, or terminated during your lifetime. Irrevocable trusts, on the other hand, cannot be changed, amended, or terminated without the permission of the settlor’s beneficiary or beneficiaries. However, they offer tax-shelter and other asset protection benefits that revocable trusts don’t.
You can transfer the majority of your assets into a trust in order to fund it, including your house, to avoid the cost and time of probate. But, if your situation changes, how do you go about removing a house from your trust?
The Law Office of David W. Foley, estate planning attorney in San Diego, can help you determine which trust is right for you, assist you in setting up the trust, and help you transfer your assets into and out of the trust if your circumstances should change.
Is it possible?
The answer to the question of can you remove a house from your trust really depends on the type of trust you have created. If the trust is revocable, the person who set up the trust or grantor, has the right to remove the house from their trust by executing a deed conveying the property from the trust back to the grantor.
However, if the trust is irrevocable, the house cannot be removed unless the terms of the trust allow it. There are exceptions such as petitioning the court to revoke the trust or to remove the property or terminating the trust itself with an agreement between the trustee and beneficiaries. Both are difficult options and are not guaranteed to be successful.
Getting estate planning guidance from an experienced attorney ensures that you’ll end up with the type of trust that fits your particular personal and financial situation. Your attorney will also be a valuable asset when planning how to fund your trust.
If you are interested in learning about estate planning and are looking for an attorney in the San Diego area who can provide you with the information and guidance to create a comprehensive estate plan, contact California Living Trusts. Our attorneys provide a variety of quality estate planning services, including crafting living trusts, wills, and POAs as well as trust administration. With more than 20 years of experience in estate planning law, you can be sure that we are looking out for you.