Save That Home for Your Loved Ones, Now!
Last month, Curt turned 76 years old. For twenty years he has suffered from an acute type 2, diabetes. His physical health is gradually, but progressively deteriorating. His kidneys are only working on a 25% of their capacity. His lungs are not functioning well. He is overweight and gets tired easily. He has difficulty breathing.
Curt’s most valuable financial possession is his home. It is a two story wooden house located on a large parcel of land at a prominent corner of a street in the downtown district of the city. The house was built years ago following the traditional lines of the classic Southern architecture. It has a beautiful façade with a small balcony popping out from the main bedroom upstairs. Everything about this house makes it a very special one, but most particularly, the fact that its mortgage has been paid off in full and Curt is its sole owner.
For obvious reasons, Curt is worried about his health. He is also concerned about his only heirs, his daughter Laura, and his nine years old grandson, Raymond. It is Curt’s wish that they would have a home of their own instead of a rental. Curt ran his own professional business for the past 30 years and he also has some other savings investments in various forms. With all these concerns, Curt decided to give his attorney a call.
His attorney suggested that Curt had some legal documents prepared to plan his estate. Among these documents, the attorney recommended to create a Trust. The trust would be the means by which Court could legally reserve his house for his minor grandson’s future enjoyment. The trust would be created within Curt’s last will. There would be a few paragraphs in his will devoted to the formation of the trust.
This is what is known as a “testamentary” trust. This type of trust only operates, at the time of the founder’s death. The founder, in this case, Curt, is legally called the “trustor”. In the document, Curt would designate a “trustee”, someone that will manage the trust. A bank account would be opened in that person’s name, so that he or she would be able to make all financial transactions to secure the trust operates according to Curt’s wishes. The trust would be created in benefit of Curt’s grandson Raymond, and named after him. Legally Raymond would be the “beneficiary”. Curt decided that his daughter Laura would be named as trustee.
Curt will refinance his home and deposit that money in the new trust bank account. After his passing, Laura would have access to that money and use it to pay for the house new mortgage monthly payments. Raymond and Laura would be financially able to keep and live in the house, until Raymond acquires legal age. After that, Raymond can either keep or sell the house. With the formation of this trust, Laura and Raymond will have the home that their dad and grandfather always wanted for them.
Creating a trust is not a complicated thing, but it does require some legal understanding and it must meet some legal requirements of content and format. In order to create a trust you should consult with an attorney or you can review the expert sources available on our website.
The property in trust will bypass estate court, therefore making it exempt from certain state taxes and from the risk of being used for other purposes rather than the one you really want it for. For more information, browse our site and make use of all the tools we have made available for you. This is the type of decision that you should make yourself, rather than leaving it to luck or destiny. Protect your loved ones’ future now. You can do it!