A revocable trust, also referred to as a living trust, is an estate planning tool that a person can use to pass his or her assets outside of probate after his or her death. A recent article explains how a person may benefit from a revocable trust.
When a person puts property in a revocable trust, he or she can manage that property during his or her lifetime. As long as the trust creator remains mentally competent, he or she may change the trust. In New Jersey, revocable living trusts are typically used as a protective measure in the event of the incapacity of the grantor.
If you would like to move your house to a revocable trust, you will need to prepare and execute a deed that transfers your house to your revocable trust. Before doing this, be sure to call your mortgagor to ensure that the change of ownership will not be problematic. Second, inform the carrier of your homeowner’s insurance policy and inform them of your intended change.
Other assets that can be moved into a revocable trust include policies such as life insurance. Before moving a life insurance policy into a revocable living trust, consider what purpose you would like the policy to serve. For example, if you would like your policy to directly benefit a single person, it would be better to name that person as the beneficiary directly on the policy, rather than passing it through a trust.