Your living trust can provide that, after your death, wealth remains in trust for your child (or other intended beneficiary) to help with designated purposes.

Well known examples of such purposes are health and education. But another purpose is help with buying a house. For example, your trust could provide that, after your death, the trustee may help your  beneficiary buy a house, with such assistance not to exceed a certain percentage of the purchase price (such as 20% or 30%). In other words, the trust could provide the down payment  for the house.

Under this trust concept for assistance in buying a house, elements to consider include your wishes as to:

1. Is this assistance solely for a principal residence?
2. For a married beneficiary, do you want the assistance to acquire a separate property interest?
3. What are the minimum age and minimum educational requirements to be eligible for this assistance?
4. Must the beneficiary qualify for whatever mortgage is necessary in order to buy the house?
5. Who will be trustee (and alternate trustees) of the trust? (See prior post on that subject.)
6. Is this concept consistent with how you would like the inheritance to improve your beneficiary’s life?

Copyright James J. Phillips January 2017