Maintaining a Residence

Maintaining a residence for family members is another common use for a living trust or testamentary trust. The home at some point needs to be transferred into the trust. The trust can then instruct who can have use of the home, for how long and how various expenses related to the home are to be paid.

For parents looking to keep their children in the same school, it's common to allow the guardians to move into the home until the children are adults. The trust can cover the mortgage, taxes, utilities, maintenance, insurance, etc.

If the trust is allowing adults, such as the surviving spouse of a blended family, a parent or a sibling to use the home for a period of time before being distributed to the beneficiaries, the grantor may choose to have that person pick up some or all costs associated with the home.

The trust can also allow use of assets within the home and any other property owned by the trust. The term used in allowing a person use of assets owned by a trust before being distributed to other beneficiaries is a "life estate".

Consult with an attorney to determine the best way to provide your family.