How to Transfer Your Home into a Trust: Key Steps and Essential Resources

How to Transfer Your Home into a Trust: Key Steps and Essential Resources

Transferring your home into a trust is a smart move for estate planning, helping to protect your assets and avoid probate. However, many homeowners overlook critical steps that could lead to unexpected issues with insurance and taxes. This guide walks you through the process and provides essential resources to ensure a smooth transition.

Step 1: Execute a Quitclaim or Warranty Deed

To place your home into a trust, you need to execute a quitclaim deed or warranty deed that transfers the property from your name to the trust’s name. This document must be recorded with your local deed office.

• Resource: Check with your county’s recorder of deeds office for deed filing requirements.
• Legal Help: Consider consulting a real estate attorney to ensure the deed is correctly executed.

Step 2: Update Your Homeowner’s Insurance Policy

After transferring the property, your trust becomes the owner. Many homeowners don’t realize they need to update their insurance policy to reflect this change.

• Action Item: Call your insurance provider and request that the trust be listed as an additional insured party.
• Resource: Contact your homeowner’s insurance company to confirm their requirements.

Step 3: Notify the Tax Commissioner’s Office

Document with title Property tax on a desk.

A common mistake homeowners make is failing to notify the Tax Commissioner’s Office after transferring their home to a trust. In many counties, this can cause you to lose important property tax exemptions, such as the homestead exemption.

• Action Item: Submit a copy of your Certification of Trust to the Tax Commissioner’s Office.
• Resource: Visit your county’s tax assessor website to review exemption policies.

Step 4: Verify Property Tax Exemptions

In some areas, transferring your home into a trust can automatically remove tax exemptions, requiring homeowners to reapply.

• Resource: Check your local county tax assessor’s website to confirm how exemptions are handled.
• Example: In Gwinnett County, GA, exemptions automatically fall off when ownership changes, even if the owner remains the same.

Step 5: Keep Trust Documents Accessible

Having easy access to trust documents can prevent delays when dealing with insurance claims, tax filings, or legal matters.

• Resource: Store copies of your deed, trust certification, and exemption confirmation in a secure location.
• Tip: Provide a copy to your estate planning attorney or financial advisor.

Final Thoughts

While transferring your home into a trust is beneficial, missing key steps can lead to costly mistakes. By following this guide and using the resources provided, you can ensure your home remains protected under your trust without losing insurance coverage or tax benefits.

For more detailed guidance, visit your local county offices or consult with a real estate attorney. If you’re considering selling or buying a home and need expert advice, I’m here to help!

Disclaimer

This guide is for informational purposes only and should not be considered legal or financial advice. As a real estate professional, I recommend consulting with an attorney or financial advisor to ensure compliance with local laws and regulations.