Transferring Real Estate Into Your Trust

How to Transfer Real Estate Into a Trust: A Step-by-Step Guide

Transferring real estate into a trust is a smart move if you want to ensure your property is managed and distributed according to your wishes, while also helping your estate avoid probate. Here’s a step-by-step guide on how to transfer real estate into a trust.

Steps to Transfer Real Estate Into Your Trust

1. Review the Trust Document

• Ensure the Trust is Established: Before transferring any property, make sure your trust document is properly drafted, signed, and notarized. The document should clearly outline how the property will be managed and distributed.
• Trustee Authority: Double-check that the trustee (the person managing the trust) has the authority to hold and manage real estate within the trust.

2. Prepare the Deed

• Type of Deed: Typically, you’ll use either a quitclaim deed or a warranty deed to transfer the property into the trust. The type of deed depends on your situation and local laws.
• Deed Information: The deed should include:
  • The current owner's name (grantor).
  • The trustee’s name and the trust’s name (grantee).
  • The legal description of the property.
  • Any necessary tax or recording information.

3. Complete the Deed

• Fill Out the Deed: Make sure all the required information is accurately filled in.
• Trustee’s Acceptance: The trustee must officially accept the property into the trust. This acceptance is typically indicated on the deed.
• Sign the Deed:
  • Grantor’s Signature: The current property owner(s) must sign the deed in front of a notary public.
  • Notarization: The deed must be notarized to be valid. In some areas, witnesses may also be required.

4. Record the Deed

• Local Recorder’s Office: Submit the deed to the county recorder’s office (or land records office) where the property is located.
• Recording Fees: Pay any applicable recording fees. The office will provide a receipt and a stamped copy of the recorded deed.

5. Update Property Records

• Property Tax Records: Notify the local property tax assessor’s office about the transfer. They’ll update the tax records to show that the trust is now the owner.
• Insurance Policies: Update both your homeowners and title insurance policies to reflect that the trust is now the owner of the property.

Example of a Quitclaim Deed for Transferring Real Estate to a Trust

QUITCLAIM DEED

This Quitclaim Deed, made this [Day] day of [Month], [Year], between [Grantor’s Name], of [Grantor’s Address] (hereinafter referred to as the "Grantor"), and [Trustee’s Name], as Trustee of The [Name of Trust] dated [Date of Trust], whose address is [Trustee’s Address] (hereinafter referred to as the "Grantee").

WITNESSETH, that the said Grantor, for and in consideration of the sum of [Consideration Amount] dollars ($[Amount]), the receipt whereof is hereby acknowledged, does hereby remise, release, and forever quitclaim unto the said Grantee, all the right, title, interest, and claim which the said Grantor has in and to the following described real estate situated in the County of [County Name], State of [State Name], to-wit:

[Legal Description of the Property]

TO HAVE AND TO HOLD the same, together with all the hereditaments and appurtenances thereunto belonging, or in anywise appertaining, to the said Grantee, and to the successors and assigns of the said Grantee forever.

IN WITNESS WHEREOF, the said Grantor has hereunto set his/her/their hand and seal the day and year first above written.

Grantor’s Signature

STATE OF [State Name]
COUNTY OF [County Name]

On this [Day] day of [Month], [Year], before me, the undersigned, a Notary Public in and for said county and state, personally appeared [Grantor’s Name], known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he/she/they executed the same for the purposes therein contained.

IN WITNESS WHEREOF, I have hereunto set my hand and official seal.

Notary Public
My Commission Expires: ________________

Additional Considerations

• Mortgage and Lender Approval:
  • Lender Notification: If there’s a mortgage on the property, you’ll need to notify the lender about the transfer. Some lenders require approval.
  • Due-on-Sale Clause: Thanks to the Garn-St. Germain Act of 1982, lenders generally cannot enforce the due-on-sale clause when transferring property into a living trust, provided certain conditions are met.
• Title Insurance:
  • Policy Update: Contact your title insurance company to update the policy, ensuring continued coverage for the trust.
• Homeowners Insurance:
  • Policy Change: Update your homeowners insurance policy to list the trust as an additional insured party.
• Estate Planning Attorney:
  • Professional Assistance: It’s a good idea to consult with an estate planning attorney to make sure the transfer is done correctly and to address any legal issues that might arise.
• Review Local Laws:
  • State and County Regulations: Be aware of any specific local regulations that may affect the process. These can vary depending on your state or county.

Final Thoughts

By following these steps and considering the additional factors, you can successfully transfer your real estate into a trust. This ensures that your property is managed and distributed according to your estate planning goals, while also helping your estate avoid probate.

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