By Suzanne McVicker of Two Spruce Law A home trust is a trust that holds the family home and provides a blueprint for the ongoing use of the property. We recommend home trusts for blended families and multi-generational families living on the same property. Property with more than one owner is often owned as tenants in common, which means that one-half of the property passes to the deceased owner’s intestate heirs or beneficiaries under their will. If the surviving co-owner cannot afford to buy out the deceased person’s heirs or beneficiaries, the property may have to be sold, even if the surviving co-owner (or anyone else living on the property) does not want to sell it. Alternatively, the property may be owned with rights of survivorship, which means that the property would automatically pass to the surviving owner, and then onto that surviving owner’s heirs or beneficiaries under their will, potentially forcing a sale of the property. Home trusts allow for significant others and family members to remain living on the property for life, and provide a plan for who will later inherit the property. A surviving partner may require assisted living of some kind, in which case the home trust may allow for the property to be sold and the proceeds used to purchase a replacement residence or pay monthly rent at an assisted living facility. Or, if the surviving partner no longer desires to live in the residence, and otherwise can provide for themselves financially, it may then pass to the deceased partner’s children. A home trust needs to address the ongoing costs associated with the real property. Ideally, the home trust will have the cash reserves to pay property taxes, maintenance, improvements, utilities, and insurance. However, often times the beneficiaries who have the right to live on the property for life will be responsible for those costs. It may be important for furnishings and equipment to remain with the property, in which case those items should also be assigned to the home trust. Serious consideration needs to be given as to who will serve as trustee to manage the property and to carry out the terms of the home trust. The home trust can provide further specific instructions as to how decisions are to be made, who has a say in decision-making, and who else would be allowed to reside on the property. #TwoSpruceLaw, #estateplanningattorney, #estateplanning101, #trust, #bendoregon, #sistersoregon, #oregonwomeninbusines, #womenownedbusiness, #probateattorney, #estateplan, #powerofattorney, #law, #willsandtrusts Via https://twosprucelaw.com/videos/home-trusts
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