Trusts

[vacation59]

My father has his residence in a trust. My father was told that it would be a better idea to put his residence in his name instead of the trust. Any ideas about this. My father lives in the state of Maryland.

 

[ALawyer]

In most states and circumstances it is usually better to hold real estate in a living trust so that it would pass directly without the expense and delay of probate -- and the same step up basis for income tax purposes applies.

While in some states a primary residence home held in trust may not qualify for the homestead exemption in the event of bankruptcy, if this is not a real concern, I don't understand why the advice was given to him -- unless there may be a special reason or circumstance that I am not aware of or it involved a type of trust that is no longer appropriate.