-Any significant life change is a good time to update a revocable (living) trust. A new home is a perfect example of just such a life change. People sometimes hesitate to update their trust because of busy schedules, intending to get to it as soon as possible. We are all busy but there are some things we should not put off, paying bills and starting or updating a trust are two examples. Updating, even starting, a revocable trust doesn’t have to be difficult, especially when working with a living trust document assistance service like San Luis Obispo’s We Help You Legal.
While it may not be the most glamorous part of homeownership, ensuring that your living trust reflects your current circumstances is a vital step in safeguarding your assets and securing the well-being of your loved ones.
Your home is likely one of the most substantial investments you’ll make in your lifetime. Updating your trust allows you to explicitly include your new property in the list of assets covered by the trust. This step ensures that the property is seamlessly integrated into your estate planning, providing clarity on how it should be managed and distributed in the future. By doing so, you protect your investment and streamline the process for your heirs.
Other reasons for keeping your living trust current include:
Avoiding probate hassles
One of the primary advantages of creating a living trust is bypassing probate court, a lengthy and potentially costly legal process. Probate can tie up your assets for months or even years, leaving your beneficiaries in limbo. Updating the living trust to include a new home ensures that it becomes an integral part of the trust and is not subject to probate. This means a smoother transition of your assets to heirs without the delays and expenses associated with the expense and time of probate proceedings.
Ensuring continued financial stability
Owning a home comes with various financial responsibilities, such as mortgage payments, property taxes, and maintenance costs. Updating the living trust allows you to designate specific instructions regarding managing these financial responsibilities in the event of your incapacity or passing. By providing clear guidelines, you help prevent financial strain on your loved ones and ensure the continued stability of your home.
If it’s been a while since the living trust was updated, downloading the living trust packet will help you organize the needed changes. The We Help You Legal team is ready to assist with the documents for a living trust from their San Luis Obispo or Paso Robles offices.
Flexibility in distribution
Life is dynamic, and circumstances can change unexpectedly. Whether it’s a growing family, a change in financial status, or new personal goals, the living trust should be adaptable to accommodate these shifts. Updating the trust when you buy a new home allows you to reassess your overall estate plan, ensuring that your assets are distributed in a manner that aligns with your current wishes and circumstances.
Incorporating additional assets
Buying a new home often goes hand in hand with acquiring additional assets or making changes to existing ones. Perhaps you’ve purchased new furniture, invested in home improvements, or obtained valuable artwork. Updating the living trust allows you to include these assets, providing a comprehensive and up-to-date overview of your estate. This holistic approach ensures that no valuable possessions are inadvertently excluded from the protection of your trust.
Protecting loved ones
Beyond the financial considerations, updating the living trust is an expression of care and responsibility towards your loved ones. Clearly outlining your wishes regarding the distribution of your assets, including your new home, can alleviate stress and potential conflicts among family members. It’s a proactive measure to protect your family’s well-being and provide them with a roadmap for the future.
We Help You Legal assists San Luis Obispo County and California communities with important legal documents including a living trust, divorce LLC/corporations, and more. With over 22 years of experience, the team brings an extensive level of experience and professionalism to support your needs and concerns.
We Help You Legal is a “self-help” legal document assistance company that provides document preparation without the high cost of an attorney. We Help You Legal, Inc. is not a law firm. We cannot represent you in court, advise you about your legal rights or the law, or select forms for you.
Call today! San Luis Obispo: (805) 221-7300, or Paso Robles: (805) 237-7770.
