In New York, and around the country, trusts are a key estate planning tool. Transferring assets into a trust is a way to reduce taxes and avoid the probate court system.
Real estate and trusts
Placing assets into a trust is a straightforward process, and it is key to estate planning. There are several different parties involved in this transaction. First, there is the grantor. The grantor is the original owner of the house and is the person or couple planning to transfer the asset into the trust. Next is the trustee. The trustee is the person or legal entity who will control and operate the trust. Last is the beneficiary of the trust, who will eventually receive its assets.
First, the grantor transfers the title of the house to the trust. They need to take the original deed and rewrite it with the new names. Then they need to sign the new deed, get it notarized, and file it with the land court. That completes the transfer. The trust now owns the real estate. It will no longer be subject to probate and can pass directly to the beneficiary heir, saving lots of time. Sometimes, transferring assets like a house is just part of a larger estate planning strategy, but the process will be the same. The trustee needs to pay taxes and otherwise manage the ownership of the house once it is in the trust.
Moving real estate title to a trust is a time and tax-saving tool that many people employ as they move into their senior years. Doing so can reduce stress and expense for your heirs.