What are the benefits of a trust vs. a will?
When you are selling your home, it’s a perfect time to think about your Estate Plan and ask yourself do I have a will or trust and which is preferred. The principal use of revocable trusts today is to avoid the probate process by having property transferred at death pursuant to the terms of the trust rather than by a will. The probate process often is sought to be avoided because of the costs and procedures associated with that process. While a trust may initially cost more than the preparation of a will, upon your passing, there can be significant savings by avoiding probate.
Are there adverse consequences to adding my adult child to the deed of my home?
Yes, unfortunately, when you add an adult child as a joint owner to your property, their potential creditors can get at the asset even though they didn’t contribute for its purchase. In addition, there are disadvantages to gifting an interest during your life as opposed to passing the property upon your death. Alternatively, numerous methods exist to enable adult children to be able to assist you with managing real estate in the event you become ill which avoid these problems.
When is having a power of attorney a good idea?
Always! A durable power of attorney (the “DPOA”) is an excellent way to avoid the problems just mentioned when considering adding an adult child as an owner of your real estate. More importantly, the DPOA will enable your family to avoid the costs of guardianship should you become incapacitated and unable to manage your financial and healthcare decisions.
How can I be sure that the proceeds from the sale of my home will be used toward my care?
As long as you have the ability to manage your financial decisions, you decide how your assets will be spent. However, should you become incapacitated and unable to make those decisions, the use of the DPOA and/or trust are an important part of an Estate Plan to ensure your loved ones will be able to utilize your assets for your care.
For assistance with a power of attorney or advice on your specific legal issue, please don’t hesitate to contact Drizin Law Office at (702) 798-4955 or via email at firstname.lastname@example.org.