Secure Your Home and Protect Your Family's Future: How to Put Your Main Residence into a Trust
Ensure your assets are in safe hands, even after you're gone.
If you're a homeowner, it's likely that one of your top priorities is keeping your home safe and secure. However, have you ever considered what might happen to your home after you're gone?
Let's say you own a house worth £500,000, and you want to protect it from potential creditors or ensure it passes to your children or grandchildren when you pass away. You could consider putting your main residence into a trust.
Here's what you need to know to get started:
Step 1: Set up a Trust
Firstly, you'll need to set up a trust with the help of a professional estate planner. Different types of trusts are available depending on your goals and circumstances.
Choosing the right type of trust is crucial as it will determine how your assets will be handled and distributed.
Step 2: Transfer the Property to the Trust
Once the trust is established, you can transfer ownership of your home to the trust. This may involve creating a new legal title for the property or assigning your existing title to the trust.
Step 3: Decide on the Beneficiaries
Decide on the beneficiaries of the trust. You could name your children or grandchildren as beneficiaries, or you could choose a charity or other organisation as the beneficiary. Be sure to clearly specify how the assets should be distributed.
Step 4: Specify the Terms of the Trust
Specify the terms of the trust, such as who the trustee(s) will be, how the trust assets can be used, and under what circumstances the trust can be terminated.
Step 5: Consider Tax Implications
Depending on the type of trust you choose, there may be tax implications to consider. A discretionary trust, for example, may incur inheritance tax or capital gains tax. Be sure to discuss these implications with your adviser.
Putting your main residence into a trust is an effective way to protect your property and ensure it passes on to your beneficiaries.
While it may seem complicated, with the help of a professional, it can be a straightforward process. By taking action now, you can ensure that your home and your family's future are secure.