Putting the House in a Trust does not significantly alter the tax ramifications. However a Trust does have a couple of advantages. Avoiding probate is one of them. A Trust is typically settled faster. And the information is a trust is not public record.
A living trust is a legal relationship involving you (the trustor), a trustee, and one or more beneficiaries. When you create a trust, you transfer property to the trust and the trustee then manages that property and pays money out of the trust to the beneficiaries, all according to your instructions in the trust document. When you die, the trust continues to exist and since the trust owns the property, whatever property is in the trust does not have to go through probate.
A will and a trust can work together in a good estate plan. The will can provide that any property in your estate at the time of your death automatically becomes a part of the trust as soon as you die. For example, you probably don’t want to transfer your cash and personal bank accounts to the trust, which means they will pass according to the terms of your will. Your will can “pour over” to your trust, and since you set the trust up while you were alive, you can control how the trust manages the property.
Setting up a Trust is a conversation best had with an attorney. There are different kinds of trusts and several roles in a trust. You want to make sure you get it right before it is too late. If you need a recommendation of an estate attorney to speak to in more depth, contact us and we will connect you.