Placing your home in a trust can have long-term benefits, but knowing the pros and cons is essential. At Oram Law, we help individuals and families make estate plans that work for them.In this guide, we’ll explain trust, the main types, and the ups and downs of putting your home in one so you can make a wise, informed decision.
What Is a Trust?
A trust is a legal arrangement in which someone (the grantor) gives assets, like a home, to a trustee, who manages them for the benefit of others.
There are two main types of trusts:
- Revocable Living Trust: This trust allows the grantor to change or cancel the trust at any time and keep control of the assets during the grantor’s lifetime.
- Irrevocable Trust: Once created, this trust cannot be changed easily. The grantor gives up control of the property, which can offer certain legal and tax protections.
Each state has different trust rules, so it’s best to talk to an estate planning lawyer to ensure your trust is done right.
Pros of Putting Your Home in a Trust
1. Avoiding Probate
Putting property in a trust lets it skip Probate after death, saving your loved ones time, money, and delays.
2. Maintaining Privacy
Unlike a will, a trust is not made public. Your family’s financial matters, including property transfers, remain confidential.
3. Planning for Incapacity
A trustee can manage your property without court involvement if you cannot manage your affairs due to illness or injury.
4. Reducing Estate Taxes
If your estate is large, placing your home in an irrevocable trust can help reduce estate taxes by removing the property from your taxable estate.
Cons of Putting Your Home in a Trust
1. Higher Setup Costs
Building trust usually costs more upfront than a simple will, but many families find the long-term savings worth it.
2. Title Transfer Required
To place your home in a trust, you must update the title with a new deed. A lawyer can help with this process.
Can You Sell a Home That’s in a Trust?
Yes. If your home is in a revocable trust, you can sell it as property. In the case of an irrevocable trust, the trustee must handle the sale according to the terms of the trust. Proceeds are managed or distributed based on those instructions.
Need Help Making the Right Decision?
At Oram Law, we’re committed to helping you create a personalized estate plan that reflects your goals and protects your legacy. If you’re considering placing your home in a trust, we can guide you through the process and help you choose the right type of trust for your needs.
Contact Oram Law today to schedule your consultation and get expert guidance on protecting your home and future.
We proudly serve clients in Lake, Highlands, Hardee, and Hillsborough counties. Handling all estate and probate law areas—including disputes between joint executors. Contact Oram Law today to schedule a consultation and get the trusted legal help you need.
About the Author
Andrew J. Oram
Andrew J. Oram is the founder and lead attorney at Oram Law, where he focuses on probate, estate planning, and real estate law. A proud double Gator, Andrew graduated summa cum laude from the University of Florida with degrees in English and Spanish, and went on to earn his Juris Doctor from the UF Levin College of Law. Known for his upbeat, client-first approach, Andrew blends deep legal knowledge with the smart use of technology to make complex legal processes easier and more efficient. His blog articles reflect a commitment to demystifying transactional law, offering practical guidance with clarity, responsiveness, and a personal touch.