Putting your house in a trust is one of the most effective estate planning moves a homeowner can make. It avoids probate, keeps the transfer private, and gets your home to your heirs faster and with less hassle than a will alone. Here’s exactly how it works.
What Happens When You Put a House in a Trust?
You create a revocable living trust — a legal entity that holds your home on your behalf. You name yourself as the trustee (keeping full control) and name a successor trustee who takes over when you die or become incapacitated.
When you die:
- Your successor trustee takes over with no court involvement
- They follow your trust document to transfer the home to your beneficiaries
- The entire process can take weeks instead of months
- No probate hearing, no public record
During your lifetime, nothing changes. You can still sell the home, refinance it, rent it, or live in it — the trust is transparent to you.
How to Put Your House in a Trust: Step-by-Step
Step 1: Create the revocable living trust
Hire an estate planning attorney to draft the trust document. Cost: $1,000–$3,000 depending on complexity and location. Online legal services like Trust & Will or LegalZoom offer lower-cost options ($300–$700) for simpler situations.
Step 2: Transfer the deed
You (or your attorney) prepares a new deed — typically a grant deed or quitclaim deed — transferring the property from your name to the trust. The deed is recorded with your county recorder’s office.
Recording fee: $15–$100 depending on your county.
Step 3: Notify your mortgage lender and insurer
If you have a mortgage, notify the lender. Most mortgages contain a “due-on-sale” clause, but the Garn-St. Germain Act (federal law) explicitly protects transfers into a living trust — your lender cannot call the loan due. Also update your homeowner’s insurance to reflect the trust as an “additional insured.”
Step 4: Update your estate plan
Ensure your trust document is coordinated with your will (typically a “pour-over will”) and beneficiary designations on your other accounts.
Cost Breakdown
| Item | Estimated Cost |
|---|---|
| Attorney fee to draft trust | $1,000–$3,000 |
| Deed preparation | $200–$500 (included in attorney fee, or separate) |
| County recording fee | $15–$100 |
| Title insurance update (optional) | $100–$300 |
| Total typical cost | $1,200–$3,500 |
DIY online trust services: $300–$700, though these are better suited to simpler estates without complicated assets or blended families.
Benefits of Putting Your House in a Trust
Avoids probate. Probate is the court-supervised process of validating a will and distributing assets. It typically takes 6–18 months and costs 2–5% of the estate’s value in attorney and court fees. A trust bypasses this entirely.
Stays private. Wills become public record when filed with the probate court. Trusts do not — your beneficiaries, asset values, and family arrangements remain private.
Faster transfer to heirs. Without probate, a successor trustee can transfer the home in weeks rather than months.
Continuity during incapacity. If you become unable to manage your affairs (due to illness or cognitive decline), your successor trustee can step in immediately without a court guardianship proceeding.
Multi-state property. If you own property in multiple states, a trust avoids multiple probate proceedings. Without a trust, your heirs may need to open a separate probate case in every state where you own real estate.
Potential Drawbacks
- Upfront cost of $1,000–$3,000 for professional setup
- Requires active transfer — the trust only covers assets you actually title into it; forgetting to transfer the deed defeats the purpose
- Refinancing may require extra steps — some title companies require brief retitling out of the trust and back in during refinancing (your attorney can advise)
- No immediate tax benefit — a revocable living trust does not reduce estate taxes or income taxes; you still report all income and capital gains as before
Revocable vs. Irrevocable Trust
A revocable living trust is by far the most common choice for homeowners. You maintain full control and can change or dissolve the trust at any time.
An irrevocable trust permanently transfers ownership — you give up control in exchange for potential estate tax or Medicaid planning benefits. This is a more complex strategy requiring specialized legal guidance. Most homeowners should not use an irrevocable trust for their primary residence without a specific reason.
Is Putting Your House in a Trust Worth It?
For most homeowners with a house worth more than $100,000, the answer is yes — especially if:
- You own real estate in multiple states
- You want to avoid a lengthy probate process for your heirs
- You value privacy (your will becomes public; your trust does not)
- You want a simple plan for incapacity
The one-time cost of $1,200–$3,500 is modest compared to the probate fees it eliminates and the months of delay it prevents for your family.
Work with an estate planning attorney in your state to create the trust and handle the deed transfer. This is one estate planning task where professional guidance is worth the cost.
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