The Benefits of Taking Title in a Trust
When it comes to estate planning and homeownership, one of the most important (yet often overlooked) questions is: how is your property titled? The way your name is recorded on title determines what happens to your property when you pass away. For many homeowners, taking title in a revocable living trust can save time, money, and stress for their loved ones.
Below are the key benefits and considerations, based on a recent class I attended with Todd Frahm at Tyler Law LLP.
Why Avoid Probate?
If a homeowner passes away without holding title in a trust, the property typically goes through probate—a public court process that can take months and be very expensive.
Probate costs are based on the gross value of the estate, not net equity.
For example, on an $800,000 estate in California, the statutory probate fees alone can be nearly $38,000, plus court costs and attorney’s fees.Probate is public and time-consuming. Family matters and estate details become part of the public record.
A will does not avoid probate. Even if you have a will, your estate may still need to go through this process.
How a Revocable Trust Helps
By transferring your property into a revocable living trust during your lifetime, you can bypass probate entirely.
Private – A trust keeps your affairs out of the public record.
Efficient – Property can be transferred quickly without waiting for court approval.
Cost-Effective – Families save tens of thousands of dollars by avoiding probate.
When title is properly held in a trust (with a recorded deed), the successor trustee can step in and handle the property without court oversight.
Best Practices for Trust Sales
If a property is being sold through a trust, here are some important steps for a smooth transaction:
Certification of Trust – Verify who the trustee is, who has authority to sign, and if co-trustees must act together.
Check Title Early – Pull the most recent vesting deed to confirm the property is actually held in the trust.
Establish Roles – The trustee, not the beneficiaries, has the legal authority to direct the sale.
Property & Disclosure Requirements – Trustees must still disclose known material facts, such as property condition, repairs, or if a death occurred on the property within the last 3 years.
Tax & Financial Coordination – Work with a CPA for appraisals, stepped-up basis, and setting up a trust account for sale proceeds.
Key Takeaways
If you own a home, having a revocable living trust is one of the smartest financial decisions you can make.
It keeps your estate private, avoids costly probate, and provides a clear plan for how your property will be handled.
Setting up your trust properly—recording the deed, updating vesting, and aligning with your mortgage—is critical.
Always coordinate with your attorney, CPA, and real estate professional to ensure your trust is fully funded and your estate plan aligns with your goals.