Should I put my home in my living trust?
Bill: Good morning Tom. I have a revocable living trust and I want to put or transfer my house and home into the name of my trust and I was wondering if I should use a quick claim deed or warranty deed.
Attorney Tom Olsen: We don’t recommend that you necessarily put your home into your trust. There is only certain circumstances where you do that. Are your children all adults?
Bill: Yes, they are.
Attorney Tom Olsen: Okay. So Bill, are you married or single?
Bill: I'm single.
Attorney Tom Olsen: Bill, rather than having your living trust own your home as a way to avoid probate when you pass away, I would prefer that you use an enhanced life estate deed a/k/a a lady bird deed that would say that your home would go directly to your children when you pass away. That way we can avoid any potential creditor issues that might get a lien against your home during your lifetime and upon your death.
Bill: Is that called an enhanced life estate deed?
Attorney Tom Olsen: It's called an enhanced life estate deed. We can mail you a booklet or email you a video where I explain enhanced life estate deeds to you. The easiest way to do that is to call or text Chrissy anytime, 407-808-8398. When did you have your trust done?
Bill: Probably two years ago.
Attorney Tom Olsen: Did the lawyer who prepared your trust transfer the title to your home into the name of your trust?
Attorney Tom Olsen: Okay. Bill, that is completely common. That lawyer had the same concern about creditors that I do when putting your home into the name of your trust. It can be a bad idea. What the lawyer did not do was take it to the next level and say, "Hey Bill, there's a workaround for you, and that's called an enhanced life estate deed”.
There are a lot of people who have living trusts and their home is not owned by their trust, and they have a false sense of security that probate will not be required when they pass away. Well, that may not be the case, especially with your home. The way to avoid probate on your home is with an enhanced life estate deed a/k/a a lady bird deed; we can send you a booklet or a video where I explain them to you. It all starts by calling or texting Chrissy anytime, 407-808-8398.