If you wish to establish a trust fund, understanding the steps involved in this process is critical. Though you may be considering the different types of trust funds you can establish, or who you wish to appoint as your trustee, there may be one important aspect you’re forgetting to consider – how to actually transfer assets! Unfortunately, many are unaware of how to transfer assets like real estate into a trust in Florida. If this reflects your circumstances, you’ll want to keep reading to learn more about these matters, including the importance of working with Tampa trust lawyers to help guide you through this process.
What Are the Benefits of Establishing a Trust Fund?
In general, one of the primary benefits of creating a trust fund is that it will avoid probate upon your passing. Probate is a long and tedious process that involves the court verifying the deceased’s will and distributing it according to the terms and conditions they have established. By avoiding this process, you can ensure your assets are immediately available for your beneficiaries. This is true regardless of whether or not you establish a revocable or irrevocable trust fund.
However, you’ll also find that by creating an irrevocable trust fund, the assets held in this trust can avoid being taken by creditors in the event you are sued. This is because they are wholly removed not only from your estate but also from your control. As such, if you are sued by a creditor or involved in a civil suit, these assets cannot be seized.
Finally, the other benefit is that a trust fund provides greater control over how and when assets are distributed. This allows you to ensure that your beneficiaries are ready to receive these assets as opposed to receiving a considerable inheritance upon your passing, when they may not be financially mature enough to handle these matters.
What Steps Must I Take to Transfer Real Estate?
The first step in placing real estate into a trust fund is to create a trust! As mentioned, there are several different types of trust funds you can choose from to best fit your needs. Once you have established the trust fund and appointed a trustee, you’ll then move to preparing the deed. Though you may already have a deed for your home or property, you’ll need to create a new one to retitle the property and fund the trust.
When preparing a new deed, like a trust fund, you’ll need to pick the option that best fits your needs. Typically, you’ll choose between a quitclaim deed, which tends to be simpler, or a warranty deed, which provides greater protection. Regardless, once you have chosen a deed, the most important thing to do is to name the trust fund as the owner of the property. This ensures that the property is transferred into your trust fund. Finally, you’ll have the document notarized and recorded with the county recorder.
You should note that if you have a mortgage on the property, you must notify your lender of the real estate transfer and title change.
As you can see, the process of transferring real estate into a trust fund is not as simple as you may assume. That is why it’s in your best interest to connect with an experienced attorney with Tampa Law Group to help guide you through this process. Our team can help you explore the different options so you can make the most informed decisions for your circumstances. Connect with us today to learn how we can help you achieve peace of mind for the future.
