For most families, real estate is the single most valuable asset they own — and also the asset most likely to cause problems if not handled correctly in the estate-planning process.
Whether you own a home, rental property, vacation home, farmland, or investment real estate, transferring it properly into your revocable living trust is essential. Why?
Because if real estate stays in your personal name, it must go through probate, even if you created a trust.
This guide explains everything homeowners need to know about safely transferring real property into a trust — without triggering tax issues, title problems, or lender concerns.
(If you haven’t yet read why trust funding is so important, start with: “Why Most Trusts Fail: The Shocking Truth About Unfunded Trusts.”)
⭐ Why Real Estate Must Be Titled Into Your Trust
Real estate is the most common reason estates end up in probate.
✔ If your home is not deeded to your trust → probate is required.
✔ If your rental property is not titled to your trust → probate is required.
✔ If any property remains in your personal name → probate is required.
A will does not avoid probate.
A trust only avoids probate when assets are actually transferred into it.
(For the complete trust-funding handbook, see: “How to Properly Fund Your Trust.”)
⭐ Step-by-Step: How to Transfer Real Estate Into Your Trust
While each state may have variations, the process generally includes the following:
✔ Step 1: Confirm Ownership
Before you transfer property, you must confirm the exact legal owners shown on the deed.
Look for:
- Your name(s)
- How you hold title (joint tenancy, tenants by entirety, tenants in common)
- Legal description of the property
- Exact parcel number (in some states)
This information must match the new deed transferring the property into your trust.
✔ Step 2: Prepare a New Deed
To move real estate into a trust, a new deed is drafted.
Most commonly, this is a:
- Quitclaim Deed, or
- Warranty Deed, depending on the state and your title company’s preferences
The deed typically transfers the property from:
You → Your Trust
Example:
“John and Sarah Williams, as husband and wife, hereby convey to The Williams Family Trust dated March 12, 2025.”
Your trustee becomes the new legal owner — but you still control the property as the trust’s creator.
✔ Step 3: Sign the Deed With a Notary
All property transfers must be notarized.
If spouses co-own property, both must sign.
✔ Step 4: Record the Deed With the County Recorder
A deed is not legally effective until it’s recorded.
Once recorded:
- Your trust becomes the official property owner
- Probate is avoided for this property
- Your successor trustee will have authority if something happens to you
This step is crucial.
⭐ Will My Mortgage Be Affected?
Many homeowners worry that transferring property into a trust will trigger the “due-on-sale” clause.
Good news:
✔ Federal law protects you.
Under the Garn-St. Germain Act, transferring your home into a revocable living trust for estate-planning purposes cannot trigger lender acceleration.
Your mortgage terms stay the same.
Your payment stays the same.
Your interest rate stays the same.
(More on legal protections is explained in: “The Complete Guide to Creating a Trust for Your Family.”)
⭐ What About Homeowners Insurance and Property Taxes?
After transferring property to a trust, you must update:
✔ Homeowners insurance
The trust should be added as an additional insured or property owner.
✔ Property taxes
Most states require notifying the assessor.
This does not change your tax rate for owner-occupied property.
✔ HOA or condo associations
They may ask for a copy of the deed.
TrustFully provides guidance to help ensure nothing is overlooked.
⭐ Special Rules for Jointly Owned Property
If spouses own property together, the deed must correctly reflect the type of shared ownership.
Examples include:
- Joint tenancy with right of survivorship
- Tenancy by the entirety (for married couples in certain states)
- Tenants in common
Transferring to a trust can preserve these rights — but only if drafted correctly.
Mistakes here can cause tax problems, property disputes, and even loss of creditor protections.
(See our upcoming post: “Estate Planning for Blended Families: Avoiding Conflict and Protecting Everyone.”)
⭐ What If My Property Is in Another State?
If you own property in multiple states, each state requires its own deed recording.
If you fail to transfer out-of-state property into your trust, you may face:
- Multiple probate cases
- Higher legal fees
- Delays distributing your assets
- Conflicts between state laws
Proper funding eliminates all of these headaches.
⭐ What About Rental Properties and Investment Real Estate?
Rental and investment properties often require additional steps:
✔ Updating landlord agreements
✔ Coordinating with property managers
✔ Assigning LLC membership (if held through an LLC)
✔ Revising insurance policies
✔ Ensuring liability protection remains intact
Many investors pair a trust with LLC ownership for optimal asset protection.
(See future post A3: “Bank Accounts, Investments, and Cash: What Goes In Your Trust?”)
⭐ Common Mistakes When Transferring Real Estate Into a Trust
Here are the most frequent errors families make:
❌ Mistake 1: Assuming your attorney transferred the property
Many firms do not include deed transfers in their fee—TrustFully does.
❌ Mistake 2: Forgetting to transfer the home after refinancing
Refinancing often temporarily removes the trust from title.
If you don’t re-deed afterward, your property could end up in probate.
❌ Mistake 3: Not recording the deed
A deed sitting in a drawer is not valid.
County recording is required.
❌ Mistake 4: Title companies refusing to insure improperly drafted deeds
Real estate law is precise.
Errors in wording, legal descriptions, or signatures can invalidate the transfer.
❌ Mistake 5: Failing to transfer out-of-state property
Each state requires its own deed.
One missed property can trigger probate for the entire estate.
⭐ How TrustFully Ensures Real Estate Is Properly Funded
At TrustFully, we handle the entire real estate funding process:
✔ Drafting deeds
✔ Ensuring legal descriptions are correct
✔ Coordinating with the recorder’s office
✔ Reviewing mortgages for compliance
✔ Updating insurance guidance
✔ Reviewing out-of-state property
✔ Working with lenders, title companies, and HOAs
✔ Confirming everything is recorded correctly
We make sure no property is forgotten — and no family ends up in probate due to an avoidable error.
⭐ Final Thoughts: Real Estate Must Be Funded Into Your Trust
Your home is too important to leave unprotected.
If property is not transferred into your trust:
- Probate is required
- Court oversight begins
- Your instructions are delayed
- Your beneficiaries face unnecessary stress
A trust only works if it’s funded — and real estate is at the top of that list.
TrustFully ensures your plan is not just drafted, but complete and functional.
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