30 Dec Do I lose ANCHOR and other benefits with a house in a trust?

Q. I am retired, disabled and 60 years old. If I put my house in a revocable trust, would I lose my home rebates, ANCHOR, Senior Freeze or other benefits? What tax forms would I have to file if I put it in a trust? I’m not profiting from the house if I do it.
— Planning ahead

A. There are a few things to consider here.

First, we recommend you meet with an estate planning attorney who can go over all the specifics as they would pertain to your situation.

A revocable trust is the alter-ego of the settlor of the trust, who is the person who creates the trust, said Catherine Romania, an estate planning attorney with Witman Stadtmauer in Florham Park.

Although title in the asset must be transferred into the name of the trust, the trust will continue to use the settlor’s Social Security number and any income will be reported on the settlor’s income tax return, Romania said.

“If the terms of the trust permit the settlor to continue to use and occupy the property for lifetime, the senior tax benefits would continue to be available provided the grantor otherwise qualifies,” she said. “However, once the property is in the trust, and if it is to be sold to a third party, the grantor will not be permitted the partial exemption from the realty transfer fee afforded seniors because such exemption is personal and will not be permitted on transfers by a trust directly to third parties.”

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This story was originally published in December 2024.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.