Insufficient Estate Planning


· The transfer of real estate to certain types of trusts may trigger environmental inspection or other reporting rules.

· You’ll need to consider mortgage recording fees, taxes, real estate transfer taxes, and recording fees for the deed.

· You should ask if the transfer of the real estate to your trust might trigger a property tax reassessment. If your property is currently undervalued, this could result in higher property taxes.

· If the property has a mortgage, have the document reviewed, to see if the note needs to be repaid to the lender.

· Check with your accountant for any tax consequences involved in making this transfer.

· If you are using this property personally, you must sign a lease with the trust in order to retain the legal right to use the premises. You must pay a fair market rental value. When the trust is a revocable living trust for your own benefit, a lease is not needed, since for tax purposes you will continue to be treated as the owner of the property.

The copyright of the article Insufficient Estate Planning in Estate Planning is owned by Susan M. Weschler. Permission to republish Insufficient Estate Planning in print or online must be granted by the author in writing.

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