Trusts are a way to protect assets from probate and may be used in estate planning. A common type of trust is a living trust, where assets are legally protected while the owners are alive. Assets may be put in a trust for a child who can access them only after reaching a certain age. Trusts may be revocable or irrevocable.
Divorce Property Refinance and Buy Out: Put Quit Claim Deed in Trust
A woman getting divorced says her ex-husband is buying her share of their home through a quit claim deed and will refinance the home. Ilyce advises her to put the quit claim deed in trust until she gets the money from her ex-husband. Otherwise, the woman may not see the cash after handing over the quit claim deed and having her husband buy her share of the property.
Lawsuit Over Land In Trust
When government determines property ownership, it may miss land that's not listed on tax rolls. When that happens, the property's ownership may remain unclear. In this case, land owned by an estate was left out of a trust. The estate's trustee now wants to put the land back in the trust. How can the land be returned to the estate?
Estate Planning For Taxes Includes Property Inheritance
With estate planning you can either leave a property to heirs through a will thus creating an inheritance, or gradually give your family members shares of the property through gifts. From a tax perspective, giving property as an inheritance is better. Another factor to consider when bequesting property is how many and which family members may be interested in the property.
Trust Beats Quit Claim Deed For Taxes
When your parent wants to put your name on the title to his or her home, what's the best option? Is a trust or a quit claim deed the better way to go? A living trust is better than a quit claim deed because of the cost basis of the home. Cost basis is the property value that's used to calculate capital gains taxes later on when you go to sell the home.
Estate Planning Includes Determining Trustees
When parents want to bequest real estate to their children they may want to use a quit claim deed when a trust is the better option. When you set up a trust you have to figure out who will be the executor and who will be the beneficiaries. Learn about the benefits of placing a property in trust versus using a quit claim deed. And discover what role the executor plays in the transaction.
Ilyce Glink on WSB Radio – July 4, 2007
Today on a special July 4th edition of the the Clark Howard show, Ilyce Glink filled in. Ilyce talked about how another 2.3 million consumers had their personal financial information poached and what companies are doing to cope with the fallout. Several listeners called in with credit and identity theft questions and then George wanted to know about irrevocable trusts. All this and some of the latest housing numbers on today's Clark Howard Show.
Elderly Parent Uncomfortable With Changes To His Home
An elderly parent had his daughter's family move into his large home when he was ill. Now the daughter is making a lot of changes and he feels uncomfortable in his own home. The homeowner should begin charging rent and look over his will, powers of attorney and other estate matters.
Trust Helps Save On Inheritance Tax
Setting up a trust for inheritance purposes ensures that assets are divided the way the deceased person wanted. A trust can also help save on inheritance taxes. Upon death, the assets in the trust are divided up among the beneficiaries.
Inherited Property Transferred Out Of Living Trust
When you inherit property, it is inherited at its current market value. An estate will usually pay any federal estate or state taxes owed on inherited property. It may also be beneficial to leave it in the trust.
In Marriage, It’s Critical To Understand Assets Ownership
When you're married it's important to understand who owns what and how property is divided up. Understanding the way assets are owned is even more important if you've got a prenuptial agreement. If you later get a divorce your prenuptial agreement will determine how the court divides assets.