If you are ready to begin estate planning, you may want to consider establishing a Trust Fund. However, many are unaware of one of the most important steps in this process, which is actually funding the Trust! As such, if you are interested in this option, the following blog explores what steps you must take to transfer real estate into a Trust Fund and the importance of working with a Medina County, Ohio Trust preparation lawyer to explore your options.
What Are the Benefits of a Trust Fund?
First and foremost, it’s imperative to understand the benefits of establishing a Trust Fund in Ohio. Generally, the primary benefit of this is that it can avoid Probate, which is the tedious and complex process of having a Will validated by the court before it is distributed. In many instances, Probate can take a considerable amount of time, meaning your Beneficiaries may not receive their inheritance until months, if not years, following your passing.
However, if you establish an Irrevocable Trust to hold your assets, you’ll also have additional protections from creditors. This is because you are technically removing your control and ownership and placing them in the Fund. As such, you are no longer considered the owner of the assets, meaning creditors cannot seize them in the event you are sued.
Finally, you’ll find that a Trust Fund provides greater control over how and when your assets are distributed to your beneficiaries. For example, if you pass away, the assets held in your Will will be distributed in accordance with Probate, regardless of whether or not your Beneficiaries are mature enough. However, with a Trust, you can create terms and conditions that allow you to determine how and when these assets are dispersed.
What Steps Must I Take to Transfer Real Estate to a Trust?
If you are interested in creating a Trust Fund, ensuring you understand how to place assets in the Trust is critical. One of the most important assets you may wish to transfer is your real estate.
Generally, the first step in this process is to create your Trust and appoint a Trustee. You cannot transfer an asset to a Trust that does not yet exist. Once the Trust is established, you’ll then need to create a new deed for the property you wish to transfer. Typically, you’ll choose between a quitclaim deed, which is simpler, or a warranty deed, which provides greater protection. Regardless, you’ll create the deed, name the trust as the owner of the property, and have the deed notarized. Next, you’ll need to submit it to your county records office. Finally, if you have a mortgage on the property, you must inform your lender of the transfer.
As you can see, this process has many important considerations. That is why it is in your best interest to connect with an experienced attorney at Krause Law to explore your legal options during these matters. Our team understands the complexities of these matters, which is why we will do everything in our power to help you make the best decision for your circumstances. Contact us today to learn how we can assist you.
