Estate Planning Comment of the Week

WEEK OF: November 26, 2006

PERSONAL RESIDENCE TRUST

There are two ways your home can avoid the expense of probate. You can place it in joint tenancy with your children or other beneficiaries - which usually creates more problems than it solves since your children or other joint owners can control the asset, their credit problems, such as judgments or liens can be claims against your home, or their spouses can interfere with your control of the property -- or you can place your home in a trust. Unfortunately, a fully funded living trust costs more than some people want to spend to protect their home. For this reason, we have created a personal residence trust which is designed solely to own your home until your death and then distribute the home to your named beneficiaries without probate. The fee for such a trust is less than the cost of a fully funded trust. If your home is your only probate asset, a personal residence trust can avoid the time and expense of probate and keep you in full control of your home during your lifetime.