How do you put a house in a trust in California? People work long and hard to build their wealth and ensure their financial security. Real estate, and particularly the individual’s primary residence, is often the most valuable assets a person will own. Estate planning is an excellent way to make sure that the wealth and assets you have labored hard to build will remain and continue to provide security for yourself and also your family in years to come. One tool to help protect your real estate and your future is a living trust.
A living trust is a revocable trust (garden variety trust) that you create during your lifetime. You can place your real estate, including your home, into the trust. You can still maintain control over the assets in the trust, and can also continue to reside in and benefit from the residence during your lifetime. At the time of your death, the home would then pass directly to the beneficiaries named in your trust instead of having to go through the probate process.
When choosing to create a trust, certain particular trust documents must be created. These documents will name the grantor, what assets are to be placed in the trust, the beneficiaries, and the conditions and terms of the trust, just to name a few issues. This will not be sufficient standing alone, however, to transfer the real estate into the trust. A grant deed must be filled out and executed transferring the home to the trustees of the trust, not to the trust itself. This may sound redundant if you are both the grantor and the trustee, but it is an important step, and the new deed will state the trustee is granted title in the capacity of trustee. For example, if your last name is “Brown,” and you are the current sole owner of your residence, the grant deed will have your name as sole owner as the person granting the property, and your name “as trustee of the Brown Family Trust.” Other important steps need to be taken at this point to avoid unnecessary taxes and complications. For example, you will need to check your title insurance conditions and requirements to ensure that you properly report the transfer and trust creation.
We can show you how to put a house in your California trust. We have extensive experience in assisting our clients with real estate and estate planning advice. Contact us today for a consultation to discuss your plans for the future.
