What about my personal residence?
You can put your personal residence into a trust in order to separate that asset from the other properties or liabilities of your business. You should remain the trust’s beneficiary in order to maintain your homestead exemption.
What about property insurance?
The name of the trust should be listed on your homeowner’s insurance policy as an additional insured or loss payee in a position inferior to your mortgage. This can be done by your insurance agent as an amendment to your policy.
What happens if the beneficiary dies?
Your beneficial interest passes by the operation of your will and, in effect, your executor steps into the beneficiary’s role. State law identifies your heirs if you don’t have a will, but you really don’t want that to happen. If the trust’s beneficiary is a corporation or limited liability company, that entity would continue to act as the beneficiary.
What’s the trustee’s role?
The Trustee follows the beneficiary’s instructions.
What’s the role of the beneficiary or property manager?
The beneficiary or property manager are responsible for maintaining the property, paying the bills, paying the mortgage, collecting rent, selling the property, making improvements, and so on.
What happens if I want to sell the property?
The beneficiary or property manager have the authority to sign the contract. The beneficiary then directs the trustee on how to disburse the sale’s proceeds.
What if I want to refinance the property or get a home equity line?
The lender will require you to personally guarantee the note, so the trustee will transfer the property back to you. The closing will take place in your name, although you may transfer the property back to the existing trust afterwards.