If you want to leave real estate to your beneficiaries when you pass away, especially your home, you're probably wondering, “How do I put my house into a trust?” It's nearly as simple as setting up a living trust and completing a deed transfer when you transfer it to the trust. However, there are some additional terms to consider when putting your home into a trust.
Create the Trust
Typically, for most estate planning needs, when someone wants to utilize a trust-based planning approach, a revocable living trust is created. In this scenario, you name yourself as the trustee and primary beneficiary of the trust. You must name a successor trustee to administer the trust when you pass away. Because you control the trust assets, the assets held in trust still legally belong to you, meaning revocable trusts don't offer asset protection. The revocable trust does bypass the probate process for all assets in it when you pass away, and the revocable trust becomes irrevocable upon your death.
Transfer Your Home Into the Trust
“How do I put my house into a trust once I create it?”, you're wondering. You should title it to the trustee of the trust within their capacity as acting trustee. For example, if your trustee's name is John Smith, and the name of the trust is Smith Family Trust, you would write a deed transfer to “John Smith, trustee of Smith Family Trust.”
You must complete the deed transferring ownership of the property before a witness and a notary public and have the deed notarized. You must submit the deed and a PT-61 tax transfer document to the Superior court clerk in your county. The typical home transfer into a trust is done as a deed of gift or as a quitclaim deed.
What if You Still Have a Mortgage?
You have certain protections for a revocable trust under the Garn-St. Germain Depository Institutions Act of 1982, a federal law. Because you aren't selling your home when you transfer it into a trust, your mortgage company can't call the full amount of your mortgage due.
Contact Peach State Wills & Trusts for Estate Planning in Georgia
Now that you know the answer to “How do I put my house into a trust?” call us at Peach State Wills & Trusts at 678-824-8278 or contact us online to schedule an estate planning consultation for help with your estate planning needs.