Heads up: if you’re thinking about how to protect your home and simplify what happens to it when you're gone, a trust might be the answer. But let’s get real: estate planning can feel like a rabbit hole. We’re cutting through the confusion with everything you need to know about whether putting your home in a trust is a smart move.

Key Takeaways:

• Putting a house in a trust can protect assets, avoid probate, and streamline inheritance.
• There are different types of trusts, revocable vs. irrevocable, with unique benefits.
• Trusts can aid in estate planning, but they aren't one-size-fits-all.
• Mortgage compliance and property tax implications must be considered.
• Professional guidance ensures proper setup and alignment with financial goals.

What Is a Trust and How Does It Work?

A trust is a legal arrangement where a third party, known as a trustee, holds assets (like your house) on behalf of one or more beneficiaries. Trusts can be used for many things, but in real estate, they’re often used for:

• Avoiding probate
• Protecting privacy
• Controlling inheritance

Types of Trusts to Know

• Revocable Living Trust: Flexible. You can make changes and remain the trustee during your lifetime.
• Irrevocable Trust: Locked in. Offers stronger protection against creditors but less control.

Pros of Putting Your House in a Trust

✅ Avoids Probate: Assets in a trust bypass probate, speeding up distribution to heirs.

✅ Maintains Privacy: Wills go public, trusts don’t. Your estate stays private.

✅ Continuity: In the event of incapacity, a trust lets someone else manage your assets smoothly.

✅ Flexibility in Distribution: You control when and how your heirs receive assets.

Cons and Considerations

⚠️ Costs: Legal setup isn’t free. You’ll pay for attorney fees and possibly future maintenance.

⚠️ Paperwork: You'll need to retitle your home into the trust, and lenders may require additional documentation.

⚠️ Tax Questions: Property taxes and capital gains rules may shift. Speak with a qualified tax advisor.

⚠️ Mortgage Implications: Transferring a mortgaged home into a trust typically doesn't trigger the due-on-sale clause under federal law, but consult your lender and an estate attorney to be safe.

When Does Putting a House in a Trust Make Sense?

• You own multiple properties or investment homes.
• You want to pass property smoothly to children or beneficiaries.
• You’re seeking to minimize estate taxes (especially with larger estates).
• You prefer privacy over public court proceedings.

Pro Tip: Don’t Go through It Alone

Setting up a trust involves legal, tax, and financial considerations. Talk to:

• Estate planning attorneys
• Tax professionals
• Mortgage advisors

Recommended Platforms to Get Started

realpha: A commission-free home buying platform focused on streamlining property ownership. Great if you're thinking of buying a new property to hold in trust.

Be My Neighbor: A licensed mortgage brokerage (NMLS #1743790) helping borrowers understand their financing options with transparency and guidance.

Conclusion: Your House, Your Legacy

Whether you're safeguarding your family’s future or avoiding probate headaches, placing your house in a trust could be a powerful move. Just make sure it's right for your situation.

Explore your options with Be My Neighbor for expert mortgage advice, and take the next step in smart ownership with realpha, a commission-free home buying platform redefining accessibility and control.

FAQs: Should You Put Your House in a Trust?

Does putting my house in a trust protect it from creditors?

Only irrevocable trusts offer strong protection. Revocable trusts do not shield assets from creditors.

Will I lose control of my home?

No. With a revocable trust, you typically serve as trustee and keep full control while you’re alive.

Can I get a mortgage on a home in a trust?

Yes, but lenders may require extra documentation. Always notify your lender if the title is held in a trust.

What happens if I sell a home that’s in a trust?

It’s possible. You’ll need to involve the trustee in the transaction. Proceeds can either remain in the trust or be distributed.

Are there tax benefits?

Not always directly. Trusts help with estate planning, but consult a tax advisor for your specific case.

Disclosures:

• Be My Neighbor Mortgage is a licensed mortgage brokerage, NMLS #1743790.
• This blog is for educational purposes only and should not be considered legal, tax, or financial advice.
• Realpha and Be My Neighbor may partner in certain property-related solutions.
• All mortgage and financial decisions should be reviewed with licensed professionals.

Ready to safeguard your home and legacy? Start with realpha and get transparent mortgage guidance at Be My Neighbor.