Don’t Let Them Take Your Hard-Earned Equity

Filed under: Financial Planning

Now that you own a house it’s time to make sure you have it protected. If you set things up right now, you will be able to avoid expensive and unnecessary probate if the worst happens. Most homeowners know about insurance and basic coverage, but sometimes people overlook the importance of trust planning.

Last week we talked about being smart with your real estate investments. It is important that you get into the right mindset when you are investing in such a big purchase. That conversation led me to this next related topic about protecting your assets now that you own them.

Why You Need a Trust

I can’t stress the importance of this topic enough. If you own property in your personal name and you pass away, it could end up resulting in a situation where a huge amount of the equity is given away to the state. When someone passes away, their assets will go into probate, which means that the government will control the distribution of the funds. A high percentage of that amount will go to taxes and fees.

So, now is the time to take action with estate planning, to ensure that the equity goes to your heirs. Everyone who owns assets, such as a house, needs to have a trust. The easiest solution is to meet with an estate planning attorney to figure out the details that will be best for your situation. It’s a complicated process that is always changing. Even if you already have a trust, it is wise to have it reviewed regularly to make sure that everything is up to date to match the latest standards.

Long-Term Strategy to Protect Your Finances

Some people are really good at making money by flipping properties and investing in real estate. But, most of us need to look at the long-term outcome of our investments. The slow, steady equity increases create a snowball effect that will maximize your financial future. Then, protection for those investments is essential so that you don’t give a bunch of that hard-earned equity away to the government.

I’m not an attorney and can’t offer legal advice, but I have a great resource that I can connect you with if you are looking for someone to help with a trust for your real estate holdings. Reach out to me if you need a referral or if you have any other questions about real estate purchases. Don’t forget to like, share, and comment!

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