How to Put a House in a Trust? What Are the Pros and Cons?

If you’re a homeowner thinking about the future, you’ve probably heard about putting your house in a trust. Whether you’re focused on avoiding probate, protecting your estate from taxes, or simply making life easier for your loved ones after you’re gone, a trust can be a smart move. But what does it actually mean, how to put a house in a trust? And what are its pros and cons? Let’s find out here.

We’ll walk you through the steps to create the trust, transfer your real estate, and choose between a revocable or irrevocable trust. We’ll also explain key terms such as successor trustee, probate court, and estate tax implications so that you can make an informed decision about your estate management.

What is a property trust?

A trust is a legal system that allows a person, the grantor, to create a trust in order to transfer a piece of real estate property to the person, the beneficiary, who would inherit their property. A trustee, in accordance with the grantor’s instructions, manages the assets in the trust on behalf of the beneficiary.

Let’s take an example to explain how trusts work. Suppose you have $100 that you want to give to your daughter next month. You’ll be out of the city next month, but do not want to give her the money ahead of time. So you give the money to your friend and ask him to hold onto it until next month, and then give it to your daughter.

You are the grantor, your friend is the trustee, and your daughter is the beneficiary. While this example will help you understand the concept of trusts, the actual process of setting up a living trust is more complicated and expensive. Moreover, it’s a lengthy process.

Why should you put your home in a trust?

The main agenda behind putting your house in a trust is avoiding probate when you pass away. When you die, your assets – whether you have a will or not – go through the probate process or a judicial process. The assets are evaluated and utilized to pay any outstanding debts or taxes. The rest of the property is then distributed according to the will. In case there’s no will, the assets are distributed in accordance with the state’s laws regarding intestate succession.

This probate process can be completed in a few months in case the property in question is a small one. For large estates or complex situations, the process might take a year or two to settle. It’s longer if the will is being contested.

Furthermore, putting your home in a trust can also protect your property in case you become incapacitated.

Key reasons to put a house in a trust:

To ensure a smooth transition of ownership after the grantor’s death
A trust is helpful to avoid probate (which is a court-supervised process to distribute assets after death)
To maintain privacy. Remember, wills become public record, but trusts do not
To plan for disability or incapacity
For potential estate tax advantages

How does a property trust work?

If the trust is a living, revocable one, you will normally name yourself as the trustee when you transfer an asset like a house into it. A successor trustee, who will take over after your death, will also be named.

Thereafter, your designated trustee will be in charge of carrying out the terms of the trust and distributing the trust’s assets to your beneficiaries. Knowing that your home will be transferred to the person you specify after your death might give you some peace of mind. The procedure also saves your beneficiary from going through a long legal procedure.

Should you set up a property trust if you have a will?

The answer depends on your priorities, goals, and the needs of your family. Creating a property trust is a faster, more efficient way to transfer your assets to your heirs than a will.

In fact, if you want your estate succession to be thoroughly planned, you can utilize both trusts and wills. A vital asset such as a house is transferred more smoothly and quickly than during the standard probate process.

What are the different types of trusts?

When it comes to estate planning, the most relevant types of trusts are revocable trusts and irrevocable trusts.

Revocable trust

As the name suggests, a revocable trust can be revoked. Also known as a living trust, it can be created during the grantor’s lifetime. And, can be changed or terminated completely by the grantor.

The grantor will typically be their own trustee till their death or incapacitation. The living grantor has full control over the assets in the trust. Upon death, the revocable trust turns to an irrevocable trust whereby a successor trustee takes control and manages the trust. This type of trust is subject to estate taxes and has no protection against creditors or ex-spouses.

Irrevocable trust

Such a trust once executed, can’t be changed or terminated. The grantor forfeits the ownership of the assets, and the trustee takes control of them.

Since the property is no longer part of your estate, it won’t be subject to an estate tax or be vulnerable to creditors. It’s important that you understand the implications of no longer owning the property you put into this trust. It’s best to consult a real estate attorney to know your legal rights and options.

How to put a house in a trust?

Decide between a revocable or irrevocable trust

The first step is to decide what kind of trust you’re looking for. Talk to an estate planning attorney to determine the best type for your situation.

As mentioned, there are two main types. A revocable living trust, where you can change or cancel the decision at any time. Moreover, you keep control of your home while alive. On the other hand, you have an irrevocable trust, which generally can’t be changed once created without the beneficiary’s consent. It offers stronger protection from estate taxes and creditors but less flexibility.

If your main goal is avoiding probate and maintaining control, a revocable living trust is usually best. But, if you’re more focused on protecting assets or reducing estate taxes, you should consider an irrevocable trust.

Create the trust document

An estate planning attorney can draft a clear, state-specific trust document to ensure it holds up in court.

This legal paperwork outlines the terms of the trust, such as:

The name of the grantor (you)
Who manages it (trustee)? This can be you or someone else
Who takes over when you’re gone (successor trustee)
The names of the beneficiaries who will get the home after your death

Sign and notarize the trust

Once the document is written, you’ll sign it in front of a notary public. At this point, the trust exists—but your house isn’t in it yet.

Transfer the house to the trust

Now comes the critical part: legally changing ownership of the home. This is done through a new deed. Here are the steps to go about it:

Draft a new deed (often a quitclaim or warranty deed)
Name the trust as the new owner (e.g., “Scott Smith, Trustee of the Scott Smith Revocable Living Trust”)
Sign the deed and have it notarized
File it with your county recorder’s office

Once the deed is recorded, your house is officially owned by the trust. Keep in mind that this change becomes part of the public record, but details of your estate do not.

Update your insurance company and mortgage lenders

Let your homeowner’s insurance company and mortgage lender know about the transfer. Most mortgage companies are okay with putting your house in a trust, especially a revocable living trust, as long as you’re still responsible for the loan.

Should you put your house in a trust? Pros and cons

Before you decide whether to put your home in a trust or not, weigh the advantages vs the disadvantages of creating a property trust.

Pros

A trust helps avoid probate – even a multistate probate process in case you own a primary residence in one state and a vacation home in another. If you put one of the properties in a trust, you can save the executor of your estate from handling two probate processes.
A trust also keeps the details of your estate private as opposed to a probate process that’s a matter of public record.
A trust can provide greater control over how a property is managed and distributed after the grantor’s death. For example, the grantor can specify who will manage the property and how the income from the property will be distributed to beneficiaries.

Cons

Setting up a living trust for a house can be a complex and expensive process due to several costs, such as court fees, legal expenses, and administrative costs.
Apart from your property, your other assets may still need to go through the probate process.
Things can get awkward if the trustee of the trust is not a reliable entity.
Putting your home into a trust can make refinancing (a rate-and-term or cash-out refinance) more difficult.

Last thoughts

If you care about avoiding probate, maintaining control over your real estate, and providing a clear plan for your heirs, putting your house in a trust is one of the smartest estate planning moves you can make. It ensures a smooth transfer of assets after your death.

Estate succession is an important part of planning for the future. You can set up a property trust if your house is your most valuable asset and you’re worried about your family’s financial situation after you’re gone. A well-executed trust can make life easier for your heirs while providing you with peace of mind. Keep in mind that it’s best to consult with an estate planning attorney or financial advisor before making any decisions about transferring your property to a trust.

FAQs

Is putting your house in a trust the same as selling it?

No. You still get to live in your home, pay the bills, and do what you want. The only difference is legal title ownership, which now rests with the trust.

Can you refinance a home that’s in a trust?

Yes, especially if it’s a revocable living trust. You may need to temporarily transfer it back to your name for closing, then return it to the trust afterward.

Do you need a lawyer to create the trust?

You technically can DIY it using online templates, but it’s best to work with an experienced estate planning attorney. They would ensure the trust document is legally sound, properly funded, and complies with state laws. You can expect the attorney fees to be about $1,500–$3,000+.

A property trust expert is especially necessary if:

You own multiple properties
Want a revocable or irrevocable trust tailored to tax planning
You’re dealing with a blended family or complex wishes

What happens to the trust after I die?

The successor trustee takes over, follows the trust’s instructions, and transfers the house to beneficiaries without probate court.

Can I put a mortgaged house into a trust?

Yes, most mortgages allow transfers to a revocable living trust. However, always check with your loan lender.

How to put a house in a trust? And, is it a good idea? was last modified: April 23rd, 2025 by Ramona Sinha

Written by Ramona Sinha. March 8, 2023

Ramona is a senior content writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.