One of the largest assets most people have is their home. Whether you have a single home or multiple properties, you may be looking into the best way to protect that asset and to preserve your wealth as you age. You may want to pass that asset on in the future, too, which is something that you and your attorney can talk about as well.
Preserving your assets is a key component of estate planning, and it’s one reason why you should start estate planning young. You can help protect your home against creditors by placing it into an irrevocable trust, for example, or by gifting it to someone with clear terms that you’re able to stay in it until your death.
Planning for your home is essential, because if you have to go to a nursing home or need to be on Medicaid, that asset could be put at risk. If you face bankruptcy or have debt collectors coming after you, your home could end up being sold to pay down those debts. No one wants to see that happen, and with good planning, it doesn’t have to.
Should you put your home into a trust?
A trust is an excellent option if you want to protect your home. An irrevocable trust places your home into the hands of a third party. This means that the home is no longer in your name, so it technically is no longer one of your assets. You can assign a beneficiary to this trust, so that someone else can inherit it if you pass away.
Avoiding debt collectors is just one reason to opt for a trust. Other benefits include helping your family avoid probate court after you pass away and avoiding having to spend down this asset to qualify for Medicaid.
There are many intricacies in the law to consider if you want to protect your home, so it’s a good idea to speak with your attorney about your intentions and how you’d like to proceed. Putting your house in a trust can result in different protections depending on the kind you choose, so it’s best to be well-informed before making a decision.