LIVING TRUST

Blended Families

Because a trust can stay intact long after the trustors pass, the trust can maintain use of a residence for anyone the trustor chooses. Common examples include:

• The trustor's children and their legal guardian(s) rather than the trustor's children moving into the guardian's home if the home is too small or far from other family members and friends.

• Use of the home by a spouse in a blended family until the spouse is no longer living, at which point the home is distributed to the deceased's heirs.

• Use of a primary or secondary home by the trustor's parents or other family members.

  The trust can state how long various people may stay in the home before it is sold and proceeds split among the beneficiaries. The trust can be responsible for paying the:

  • Mortgage
  • Taxes
  • Utilities
  • Maintenance / upkeep

  In order to pay for the mortgage, taxes, utilities, maintenance and upkeep, it is important to have cash available.

  If bank and investment accounts do not have sufficient funds to cover these costs, a very inexpensive tool to create cash is term life insurance. Set the term for the duration someone may be residing in the home. Consult an insurance professional. The payout from the life insurance can go directly into the trust's bank accounts from which bills can be paid.

  Recommended Pages to Read Next

• Controlling Distributions
  
• Blended Families