A trust is a legal framework that owners can use to protect their assets during estate planning. Assets that can be placed in a trust include expensive jewelry, land, residential real estate, commercial property and vehicles. If you’re an Indiana resident creating or updating your estate plan, it may be helpful to meet with a financial advisor to determine if a property trust is best for you.
How do property trusts work?
Technically, there isn’t is particular type of trust called a property trust. When it comes to estate planning, any trust can include several assets such as real estate and property. A property trust is usually a revocable or irrevocable trust. Both of these trusts can be seeded with investments like property, family heirlooms, investments and cash.
Revocable trusts are estate planning tools that allow you to add or take away property from the trust during your lifetime. For instance, if you have a home in the trust, you can remove it if this makes it easier to sell the property. You could take family antiques from the trust if you decide you want to leave the item to another relative. You can also do away with a revocable trust completely if you decide that you no longer need it.
Do you need a property trust?
Trusts are used by those who are actively engaged in estate planning and want to ensure that their financial wishes are carried out. Despite the rumors, your assets are not protected from estate taxes simply because they are in a trust. If your estate is worth more than the federal estate tax limit threshold, the appropriate taxes are due even if all your other property or belongings are in the trust.