Archive for the 'Divorce & Real Estate' Category
Should You Create a Living Trust?
Posted by Rachel LaMar, J.D. | Leave A Comment »
Have you considered creating a living trust? Many homeowners don’t even think about placing their homes in a trust, but there can be some big benefits to doing so and it is very simple to accomplish.
Let’s start with the basics. A trust is a binding legal document in which you name a beneficiary–a person or number of people–to be responsible for managing your property in order to benefit designated trustees (like your children should something happen to you). If you create the trust during your lifetime and elect to make changes to it at any time until your death this is a revocable living trust. You can also create an irrevocable trust, in which the terms cannot be altered.
Benefits of a trust:
1. Harder to overturn your dying wishes. A trust is more iron-clad than a will and does not have to go through probate.
2. Shorter time limits to settlement of your estate once you pass away. Normally upon death of the owner property has to go through probate. This legal process can be lengthy, especially if there are others or creditors claiming an interest in the property. With an established trust survivors are usually able to save time and expenses by avoiding probate.
3. May offer substantial savings on estate taxes. Since the estate will not have to go through probate it will save your survivors money associated with this process.
4. Privacy. Wills, which have to be filed in court upon the death of the maker, can be viewed publicly by anyone requesting a copy, but tems of a trust may NOT be made public. If you have substantial assests in the trust or perhaps some family members who you do not wish to fight over assets, a trust may be a great tool for keeping things quiet.
Caveats:
1. Title Insurance: A title insurance policy is a policy between the title insurance company and the named insured. Once that person creates a trust and names a third party or conveys property (e.g. by putting it into a trust), the title insurance may become invalid. This is because he nature of the relationship has changed–the owner(s) named in the original title policy is no longer the title holder.
A simple call to your title insurer will tell you whether you need to be concerned with this issue. If the trust will effect the policy there is an easy fix–an endorsement can be added to your policy that will effectively name the party covered in your trust. There will be a fee for doing so but it is worth the while if you find that a trust is beneficial to you.
2. Creditors. Depending on your state of residency there may be some issues with creditors being able to attach the real estate of the deceased spouse to satisfy sole debts incurred by that person. You need to check with your attorney to see if this will be an issue for you.
Trusts can be advantageous but it is imperative that you discuss your particular situation with your estate planning or real estate attorney to make sure it is a the right move for you, as not everyone will benefit from establishing a trust. Make sure you have all the information needed so you can make an informed decision.
Popularity: 4% [?]
Related Posts: Baby Boomers, Carlsbad, Carmel Valley, Coastal Living, Contracts & Negotiations, Divorce & Real Estate, Escondido, Financial news, Real Estate News
My House Is Worth What? A Balancing Act To Price A Home In Divorce
Posted by Mary Reynolds | Leave A Comment »
In the ever changing San Diego real estate market it can be a challenge to accurately price a home for sale. Traditionally, Realtors have always used the “comps” as a guide, looking at the price of homes sold in the last year. But these days what sold last year at this time is possibly $10,000 to $20,000 or more less than it was last year.
It has become a true skill to price a home where it will sell quickly and before prices drop around it. If you are a seller that must sell now, you face a tougher road than in years past. However selling a home in divorce complicates the whole process even further. So often, in a real estate transaction in a divorce, one of the partners doesn’t really want to sell the home, and sometimes they will sabotage the process. 
Convincing that spouse to sell at a price lower than last year’s comps is a tough negotiation. It takes patience and detailed information. Spouses in divorce want to be sure they are getting what is fair. They want assurance that they will be able to live the same type of life they lived before the divorce, and want to get as much as possible from their investments so they can move forward in their lives.
When setting the price for sale of their precious home, it is very important to show not only the comps on a home, but how the sale of the home will benefit each spouse. Providing the sellers a look at their financial outcome from the sale is key. Showing the spouse that really wants to stay in the home that they will be able to move forward after the sale will keep emotions intact.
Sitting the spouses down together to discuss price isn’t always a good idea. Taking the time to sit with each spouse separately to discuss their options after the sale will allow the husband and wife to focus on themselves and their future. After all, putting the house on the market is such a final step in the divorce process and a sign that the split is really going to happen. After each spouse understands how they will benefit from the sale of their home, we can bring them together and discuss the price. Each spouse then has enough information to make a decision.
Working with divorcing couples in a Real Estate transaction takes patience, compassion and understanding. We do the homework ahead of time and plan on spending extra time with each spouse to assure them that we are doing everything in our power to make this transaction equitable, fair and as stress free as possible. Our goal is to ease our clients mind and help with the emotional turmoil that each spouse is feeling.
If you or someone you know is considering a divorce and you would like information and help, don’t hesitate to call or email me.
Popularity: 6% [?]
Related Posts: Divorce & Real Estate, Real Estate News
