Please help me understand the benefits and differences between a living trust (for a property) vs. having a name on the property deed.
May 29, 2012 3:14 PM Subscribe
What's the benefit of having a living trust for a property over having my name on the property deed?
posted by elif to law & government (6 answers total)
I will soon file a quitdeed claim to change the names on the deed of my primary residence from 2 people to my name only in California.
My tax preparer, who is also an estate planner, suggests opening a living trust for the property (my primary residence). His reasoning is that it protects the property from lawsuits or creditors. I'm in my early 30s, unmarried, no children, good credit. At this moment, I'm not concerned with who will get the property when I die.
Does his suggestion make any sense at all? If a living trust protects the property from lawsuits or creditors, why doesn't everybody have their house in one?
AFAIK, filing a quitdeed claim costs less than $100, while opening a living trust potentially costs a couple thousand.