Estate planning is about protecting you and your loved ones. Sometimes this can be a difficult endeavor when there is a loved one who may require additional support at your death. While you may want to give as much as possible to this individual, you may not want to do so at the expense of others you care about. A right of occupancy trust can help you plan for this situation as it relates to property use and ownership.
What is a right of occupancy trust?
A right of occupancy trust allows you to designate a beneficiary to live at your residence or use another piece of real estate for a designated time-period or until the beneficiary dies or moves away.
To implement this strategy, you include a provision in either your last will and testament or trust agreement that places the real property into a separate sub-trust overseen by the trustee you have selected. The terms of this provision may allocate money to the sub-trust to cover the property’s maintenance expenses. Instructions are also included that outline the beneficiary’s rights and responsibilities, as well any responsibilities that the trustee will need to undertake on the trust’s behalf. Finally, the trust instrument directs what happens to the property once the beneficiary passes away.
Why should you consider a right of occupancy trust?
If you have a residence in your sole name but want to provide your surviving spouse a place to live without potentially disinheriting your children from a previous relationship, or you have property that has been in and you wish to have it kept in your family for generations to come, this strategy will enable you to protect all parties.
You Deserve a Team to Support You!
To ensure that your wishes are carried out, it is important that we get your team involved to anticipate, plan, and execute all aspects of this strategy. In addition to an estate planning attorney, a real estate agent, a financial advisor, an insurance agent and a tax advisor should be consulted to discuss important options you have with respect to how your property is handled and how you want to provide for your loved ones. This will give you peace of mind that your plan will proceed smoothly at your passing and that your loved ones will be taken care of.
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For tips and advice, look for The Property Sisters segment each month in Stroll Palos Park.
They are always here to answer your questions:
Bridget Gricus (708) 814-6253, bridgetgricus@gmail.com
Eileen Kerlin Walsh (708) 448-5169, Eileen@KerlinWalshLaw.com
