Trust and Real Estate Trust

[beat goes on]

I have set up a living trust and wanted to put my house in it. HOwever, the bank handling the trust told me not to put the house in the trust. should I set up a Real Estate Trust for my house? will I benefit formt he taxes and mortgage payments?than ks for any help. The Beat Goes On.

 

[vrzirn]

What reason were you given by the bank? i should think all your assets would belong in the trust.Taxes and mortgage interest are always deductible.

 

[beat goes on]

the head of the trust department just said he doesw nto advise it becasue they would have to make sure all the work is odne to the house tha needs to be done. Also, I may have misunderstood him but I think he told me I could not deduct the mortgage and taxes, the trust would do that. HOwever, the other person in the trut department suggested I do include the house.
A frined was recently told to put her house in aq Real Estate Trust which meant id did nto go through probate. What woudl be the difference?

 

[vrzirn]

It is impossible to give you any answers until you know what your questions are.. I do not think you even know what kind of trust you have and you do not know what you have been told.There are a lot of people stirring your unknown soup.
Go back to the attorney that set up your trust and give him a written list of all your questions.

 

[beat goes on]

My trust currently has my stokcs, and other financial assetts in the trust. the only thing notin the trust is my home. The head of the trut department told me he does nto want the hosue in the trust becasue 1. They woudl be responsible look after it. 2. I wulod not6 be able to deduct the mortgage and taxes on my taxes annually and therefore it wuld not be to my benefict. However, I am under the impression a Real Estate trust is different but the same. The houe would be in the trust and woudl be mine during my lifetime. However, upon my demise it wuld not have to go through probate. Am I correct with this information. ? I am asking for another opinion. I was not awre you could set up a real estate trust until a friend said that is wht her attorney suggested. Would that make sense ?I am beginning not to trust the bank who holdsw the trust I currently have. this concerns me a great deal becaue I am dealing with a catastrophic illness. Thansk for your help.

 

[vrzirn]

You do not need another trust! Your brokerage account statements say John Doe Trust, John Doe, Trustee and that is how you must hold title to your house. It is a simple change at the Recorder's office.Then the house will not have to go through probate.
You will still be entitled to deductions for mortgage interest and taxes. You have to move all your assets into the trust otherwise there would be no sense in setting it up.
Now either talk to your accountant or the attorney that set up the trust.It appears your bank is giving you some mis-information.

 

[beat goes on]

thank You I appreciat4e your advice. I thought the bank just did not want to bother with this. I think I have to talk to another bank or trust company and tax attorney. thanks again. My friend was told to put hers in separate trusts. why I do not know. That ws why I was asking. Again thank You.

 

[vrzirn]

You can call the recorder's office and ask for the title change form. Fill it out and have your signature notarized and mail it back. They may ask for small fee.