How to Put Your House in a Trust: A Real Estate Broker's Guide

To put your house in a trust: create a living trust document, prepare a new deed transferring the property to yourself as trustee, sign and notarize the deed, record it with your county recorder's office, and notify your mortgage lender and insurance company. The process typically takes a few days and does not trigger your mortgage's due-on-sale clause under federal law.

Your home is likely the most valuable asset you own, and it is also the asset most likely to get stuck in probate if you do not plan ahead. As a licensed real estate brokerage that handles property transactions daily, we see firsthand what happens when families try to sell, refinance, or transfer a home after someone passes away without a trust. The delays, the legal costs, and the frustration are entirely preventable.

Putting a house in a trust is one of the most effective ways to protect your family from probate and ensure your property transfers smoothly to the people you choose. The process is more straightforward than most homeowners expect, but there are specific steps involving deeds, title, and county recording that must be done correctly for the trust to actually control your property.

This guide walks you through the entire process step by step, including how to handle a mortgage, what type of deed to use, how to protect your homestead exemption, the tax implications you should understand, and what mistakes to avoid.

Why You Should Put Your House in a Trust

When a homeowner dies without a trust, their home typically goes through probate — a court-supervised process that can take six months to two years depending on the state. During probate, your family cannot sell the house, refinance it, or transfer it to heirs without court approval.

The costs add up quickly. Probate fees, which include attorney fees, court costs, and executor compensation, typically consume three to seven percent of the estate's value. On a home worth $500,000, that could mean $15,000 to $35,000 in fees your family pays out of the inheritance. For a detailed breakdown of what probate costs and how to avoid it, see our guide on how to avoid probate.

A revocable living trust solves this problem. When your home is titled in the name of your trust, it passes directly to your beneficiaries through your successor trustee — no court involvement, no public record, no waiting. Your family can typically complete the transfer within weeks instead of months.

Beyond probate avoidance, a living trust also protects you if you become incapacitated. If you suffer an illness or injury that prevents you from managing your affairs, your successor trustee can step in and handle the property — pay the mortgage, maintain insurance, manage repairs — without your family needing to go to court for a conservatorship. A will cannot do this. Even with careful planning, assets can be missed. A pour-over will works alongside your trust to catch anything that was not transferred in time and direct it into the trust after your death.

Who Owns the Property in a Trust?

This is one of the most common questions homeowners ask, and the answer is simpler than it sounds.

When you transfer your home into a revocable living trust, the trust becomes the legal owner of the property. However, because you are typically both the grantor (creator) and the trustee of your own trust, you maintain complete control over the property during your lifetime. You continue to live in the home, make all decisions about it, pay the mortgage, collect rental income if applicable, and can sell or refinance the property at any time.

Nothing changes in your day-to-day life. The only difference is how the property is titled. Instead of the deed reading "John and Jane Smith," it reads "John and Jane Smith, Trustees of the Smith Family Trust." You are still in control — the trust is simply the legal vehicle that holds the title.

When you pass away, your successor trustee — the person you named in your trust document — follows your written instructions and transfers the property to your beneficiaries. No court is involved. To understand how primary and contingent beneficiaries work in a trust, including why naming backup beneficiaries matters, we cover that in detail separately.

Step-by-Step: How to Transfer Your Home into a Trust

Step 1: Create the Living Trust Document

Before you can transfer your home, you need a trust document. This is the legal framework that establishes the trust, names your trustee and successor trustee, identifies your beneficiaries, and sets the rules for how your assets are managed and distributed.

You can create a trust through an attorney, which typically costs $1,500 to $5,000 depending on complexity and location. For families with straightforward estates — a home, retirement accounts, and a clear set of beneficiaries — an online platform is a faster and more affordable option. With 299Trust, individual plans start at $299 and joint plans start at $399, and include a living trust, will, powers of attorney, and healthcare directives, all delivered to your email in minutes. Our step-by-step guide to creating a trust without an attorney explains exactly when DIY works and when professional help is warranted.

For a full comparison of costs by method, see how much a living trust costs.

Step 2: Determine the Right Type of Deed

This is where real estate expertise matters. The type of deed you use to transfer your home into your trust depends on your state and your situation. The three most common types are:

Grant deed. Used in California and several other states. A grant deed transfers ownership and includes implied warranties that the grantor has not previously transferred the property to someone else. This is the standard deed type for trust transfers in California.

Quitclaim deed. Used in many states for trust transfers. A quitclaim deed transfers whatever ownership interest you have in the property without making any guarantees about the title. Because you are transferring property to yourself as trustee — not to a third party — a quitclaim deed trust transfer is often sufficient and simpler to prepare.

Warranty deed. Used in some states, particularly in the eastern United States. A warranty deed provides the strongest title guarantees. Some states require or prefer warranty deeds even for trust transfers.

The deed must include specific language identifying the trust. A typical trust transfer deed reads something like: "John Smith and Jane Smith, husband and wife, hereby grant to John Smith and Jane Smith, Trustees of the Smith Family Trust, dated [date]." The exact language varies by state and county.

Step 3: Complete and Sign the Deed

The deed must be signed by all current property owners. If you and your spouse own the home jointly, both of you must sign. The signatures must be notarized — this is a universal requirement for real estate documents that will be recorded with the county.

Some states require witnesses in addition to notarization. Florida, for example, requires two witnesses for deed execution. Your state's specific requirements matter here, and using documents that do not comply with local rules can result in a deed that is not legally effective.

For California homeowners, our Living Trust in California guide covers Prop 19, community property, and the specific deed requirements for California trust transfers. For Texas and Florida, see Living Trust in Texas and Living Trust in Florida.

Step 4: File a Preliminary Change of Ownership Report (If Required)

In California and some other states, you must file a Preliminary Change of Ownership Report (PCOR) with the deed. This form tells the county assessor that the transfer is between you and your own trust, not a sale to a third party, and therefore should not trigger a property tax reassessment.

This step is critical. If you skip the PCOR or fill it out incorrectly, the county may reassess your property at current market value, potentially increasing your property taxes significantly. For a home purchased decades ago at a much lower value, the difference can be thousands of dollars per year.

Not all states require this form, but many have similar exemption filings. Check with your county recorder's office before recording the deed.

Step 5: Record the Deed with the County Recorder

Take the signed, notarized deed (and PCOR if applicable) to your county recorder's office and file it. Recording fees vary by county but typically range from $15 to $75. Some counties allow electronic recording.

Once recorded, the transfer is complete. Your home is now legally owned by your trust. The county recorder stamps the deed with a recording number and date, and the document becomes part of the public land records.

Keep the original recorded deed with your trust documents in a secure location. Your successor trustee will need it when administering the trust.

Step 6: Notify Your Mortgage Lender and Insurance Company

After recording the deed, take two additional steps:

Notify your mortgage lender. Let them know the property has been transferred into your revocable living trust. You do not need their permission (see the mortgage section below), but notifying them keeps your records current and prevents any confusion with future correspondence.

Update your homeowner's insurance. Contact your insurance company and update the policy to reflect the trust as the property owner. The named insured should read something like "John Smith,

Trustee of the Smith Family Trust." Failing to update your insurance could create coverage issues if you ever need to file a claim.

How to Put a House in a Trust with a Mortgage

This is the concern that stops most homeowners from transferring their property into a trust: "Will the bank call my loan due?"

The answer is no. Federal law protects you.

The Garn-St. Germain Depository Institutions Act of 1982 prohibits lenders from exercising a due-on-sale clause when a homeowner transfers their property into a revocable living trust, as long as the borrower remains a beneficiary of the trust and continues to occupy the property. This applies to virtually all residential mortgages.

In practical terms, this means you can transfer your mortgaged home into your living trust without triggering the due-on-sale clause, without refinancing, and without your lender's prior approval. You simply notify the lender after the transfer is complete.

There are a few things to keep in mind. Your mortgage stays in your personal name — you are not transferring the debt, only the title. You continue to make the same payments on the same terms. The trust simply holds the title while you remain personally liable for the mortgage.

If you plan to refinance in the future, some lenders may ask you to temporarily transfer the property out of the trust, complete the refinance, and then transfer it back in. This is a minor administrative step, not a legal obstacle. For a broader look at how trusts and wills serve different purposes, see our guide on living trust vs will.

Protecting Your Homestead Exemption

Most states offer a homestead exemption that reduces the property taxes on your primary residence or protects it from certain creditor claims. Homeowners worry that transferring their home into a trust will cause them to lose this exemption.

In most states, transferring your home to your own revocable living trust does not affect your homestead exemption, as long as you continue to live in the home as your primary residence.

However, some states and counties require specific language in the trust document or deed to preserve the exemption.

California requires a Preliminary Change of Ownership Report to confirm the transfer does not trigger reassessment. Texas requires homestead exemption language in the trust document under the Texas Tax Code. Florida requires compliance with the constitutional homestead provisions and proper language in both the deed and trust.

This is one area where state-specific details matter enormously. Using generic trust documents that do not account for your state's homestead rules can result in a surprise tax increase. Make sure your trust documents are tailored to your state's requirements.

Tax Implications of Putting Your House in a Trust

Understanding the tax consequences of transferring your home into a trust is essential. The good news is that for a revocable living trust, the tax treatment is largely favorable — but only if the transfer is handled correctly.

Step-Up in Basis

One of the most significant tax benefits of owning property through a revocable living trust is the step-up in cost basis that your beneficiaries receive when they inherit the home.

Cost basis is the value the IRS uses to calculate capital gains when property is sold. If you purchased your home for $200,000 and it is worth $750,000 at the time of your death, your beneficiaries' cost basis "steps up" to $750,000 — the fair market value at date of death. If they sell the home shortly after inheriting it, they owe little to no capital gains tax because the sale price is close to their stepped-up basis.

Without the step-up, your beneficiaries would inherit your original $200,000 basis. A sale at $750,000 would trigger $550,000 in taxable capital gains, potentially resulting in a federal tax bill of $82,500 or more at the long-term capital gains rate.

Property held in a revocable living trust receives the same step-up in basis as property that passes through probate. The trust does not change this benefit. In community property states like

California, Texas, and Arizona, both halves of community property receive a full step-up in basis when one spouse dies — a significant advantage that is preserved when the home is held in a joint revocable trust.

Transfer Taxes

Many homeowners worry that transferring their home into a trust will trigger transfer taxes — the fees that state and local governments charge when real property changes hands. In nearly all cases, transferring your home into your own revocable living trust does not trigger transfer taxes.

The reason is straightforward: you are the same owner before and after the transfer. The property is moving from "John Smith" to "John Smith, Trustee of the Smith Family Trust." Because beneficial ownership has not changed, no transfer tax applies. The deed must clearly identify the transfer as a trust transfer — not a sale — for this exemption to apply.

Some counties require a specific exemption form or affidavit to confirm the transfer is exempt. Your county recorder's office can tell you whether an additional form is needed at the time of recording.

Property Tax Reassessment

Closely related to transfer taxes is the question of property tax reassessment. In states with assessed-value-based property tax systems — most notably California under Proposition 13 — a change of ownership can trigger a reassessment to current market value, dramatically increasing annual property taxes.

Transferring your home into your own revocable living trust is generally NOT a change of ownership for property tax purposes. You retain beneficial ownership and control, so the assessor's office should not reassess the property. However, as discussed in the homestead section above, filing the correct paperwork — such as California's Preliminary Change of Ownership Report — is essential to prevent an accidental reassessment.

The risk is not the transfer itself. The risk is failing to file the right forms. A missed filing on a home purchased 30 years ago could mean property taxes jumping from $3,000 per year to $15,000 per year overnight. Take the time to confirm your county's requirements before recording the deed.

Should I Put My House in a Trust?

For most homeowners, the answer is yes. A living trust is particularly valuable if you own real estate because property is one of the most common assets that gets tied up in probate. If you own a home and want your family to avoid probate, maintain privacy, and have immediate access to the property after you pass away, a trust is the most effective tool available.

A trust makes even more sense if you own property in more than one state. Without a trust, your family could face probate proceedings in every state where you own real estate — a process called ancillary probate that multiplies the costs and delays. A living trust avoids ancillary probate entirely by holding all properties under one legal entity.

However, there are situations where a trust alone may not be enough, and professional guidance is appropriate. If your estate involves significant business interests, complex tax situations, or blended family dynamics, consider consulting an attorney. For a realistic assessment of what trusts can and cannot do, see what are the disadvantages of a living trust.

If you are comparing different trust types, our guide on revocable vs irrevocable trusts explains the key differences and which is right for most families.

Common Mistakes When Putting a House in a Trust

Not recording the deed. Creating a trust document is not enough. If you do not execute and record a new deed transferring the property into the trust, the trust does not own the home. This is the most common mistake in estate planning — and the most costly. For a full walkthrough of this critical step, see our guide on how to fund a living trust.

Using the wrong deed type. Each state has preferences and requirements for the type of deed used in trust transfers. Using the wrong one can create title issues that are expensive to fix.

Failing to update insurance. If your homeowner's insurance policy does not reflect the trust as the property owner, you could face coverage disputes after a loss.

Skipping the change of ownership report. In states that require this filing, skipping it can trigger a property tax reassessment that costs thousands per year.

Not updating the trust after major changes. If you buy a new home, refinance, or make significant property improvements, review your trust to make sure it still reflects your current situation and assets. For foundational guidance on keeping your plan current, see our estate planning basics checklist.

How Long Can a House Stay in a Trust After Death?

There is no legal time limit on how long a house can remain in a trust after the trust creator passes away. The property can stay in the trust for as long as the trust document allows — which could be weeks, years, or even decades depending on the instructions you set.

In most cases, the successor trustee distributes assets to beneficiaries relatively quickly, often within 30 to 90 days. However, there are valid reasons to keep a house in a trust for a longer period. If a beneficiary is a minor, the trust may hold the property until the child reaches a specified age. If the trust creator wanted a surviving spouse to continue living in the home for their lifetime before the property passes to children, the trust can accommodate that as well.

Some trusts include provisions that direct the successor trustee to sell the property and distribute the proceeds rather than transferring the home itself. In those cases, the home may remain in the trust until market conditions are favorable or until the sale process is complete.

The key point is that the trust document controls everything. Whatever instructions you include regarding the timing and method of distribution, your successor trustee is legally obligated to follow.

This is one of the core advantages of a living trust over a will — you decide not just who receives your home, but when and how.

Frequently Asked Questions

How do I put my house in a trust?

Create a living trust document, prepare a new deed transferring the property from your name to your name as trustee, sign and notarize the deed, file any required change of ownership reports, and record the deed with your county recorder's office. Update your mortgage lender and homeowner's insurance afterward.

Should I put my house in a trust?

For most homeowners, yes. A living trust allows your home to pass directly to your beneficiaries without probate, maintains privacy, and provides incapacity protection. It is especially important if you own property in multiple states or live in a state with expensive probate.

Can I put my house in a trust if I have a mortgage?

Yes. Federal law under the Garn-St. Germain Act protects homeowners who transfer their primary residence into a revocable living trust. Your lender cannot call the loan due as long as you remain a beneficiary of the trust and continue to occupy the property.

Who owns the property in a revocable trust?

The trust is the legal owner, but you retain full control as the trustee. You can live in the home, sell it, refinance it, or make any decisions about it exactly as you did before. Nothing changes in your day-to-day life.

Will putting my house in a trust affect my property taxes?

In most states, transferring your home to your own revocable living trust does not trigger a property tax reassessment. However, some states require specific filings or language in the deed to confirm this. Check your state's requirements to preserve your homestead exemption.

How long can a house stay in a trust after death?

There is no legal time limit. The house can remain in the trust for as long as the trust document allows. Your successor trustee follows your instructions, which may direct an immediate transfer to beneficiaries, a sale of the property, or continued management of the home for a specified period.

Do I need a lawyer to put my house in a trust?

Not necessarily. If your situation is straightforward, you can create a trust and prepare the deed transfer through an online platform. The key is ensuring your documents comply with your state's specific requirements for trust execution, deed formatting, and homestead preservation.

Ready to Put Your Home in a Trust?

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About the Author

DACA Financial Group Mortgage & Realty is a licensed real estate brokerage and mortgage lending firm based in San Diego, California. The firm regularly handles property transactions that involve trust-held real estate, including deed transfers into living trusts, title changes for trust-owned properties, and mortgage lending on homes held in revocable trusts. This article draws on that direct transactional experience to explain how homeowners can transfer their property into a trust correctly — from choosing the right deed to recording it with the county and preserving their homestead exemption.

Licensed Real Estate Broker, California DRE #01810373

4542 Ruffner Street, Suite 110 | San Diego, CA 92111

This article is for informational and educational purposes only and does not constitute legal advice. Estate planning and real estate laws vary by state. For specific legal questions, consult a qualified estate planning attorney. 299Trust.com is not a law firm.