There are many legal tools that can help financially wise make the most of their investments. When it comes to purchasing a home, potential buyers may consider a couple of different options.
One example involves using a trust to purchase a home.
Why would a buyer purchase a home with a trust?
Three benefits can include:
- Anonymity. When the property is purchased or held in a trust, the owner is listed as the trust. This allows for some anonymity. This can also serve to protect against liability. If something were to happen in the property that resulted in a lawsuit, the creditor would go after the trust, if structured wisely the trust would protect the individual who created the trust from the lawsuit.
- Avoiding probate. Probate is a court process used to distribute assets. This process, used to administer one’s estate, can take a great deal of time and lead to unnecessary costs. Homeowners can reduce the risk of probate by transferring assets, like their home, into a trust.
- Tax savings. Depending on the language used to draft the trust, it can result in tax There are many different types of trusts that can achieve a number of different goals. It is wise to discuss your goals with a professional to better ensure it is drafted to meet your needs.
A trust is not the right tool for every situation. Other legal tools may work better for your goals. An attorney experienced in real estate law can discuss this and other options and better ensure you find a solution that meets your needs.