Should I Put My New Home in a Living Trust When I Buy?

Buying a home is often the moment people realize they own something big enough to plan for. Escrow asks how you want to hold title, and "in my trust" is one of the options.

I'm Jeanette Nelson, a REALTOR® with Jeanette Nelson Real Estate, Keller Williams Realty, serving Orange County, Huntington Beach, Costa Mesa, Fountain Valley, and surrounding areas. I also help families with trust sales and probate sales, where how a home was titled makes a real difference. This is general information, not legal or tax advice. An estate planning attorney and a CPA can guide your specific choices.

California Courts self-help explains that if assets are in the trust, they should go to the beneficiaries without having to go to probate court. It also notes a living trust can help heirs skip the long wait and expense of probate.

The catch is that the trust only controls what you actually put into it. A trust document by itself does not move your house. Title to the home has to be held by the trustee of the trust.

If a home is left outside the trust, your family may need a court process later. California Courts self-help lists a simpler procedure for a main home in California worth up to $750,000 for deaths on or after April 1, 2025. In much of Orange County, home values are above that, which is one reason families plan ahead. See our guide on how probate works for an inherited house.

Often, yes. Fannie Mae accepts an inter vivos revocable trust as a borrower on loans it buys, if the trust meets its rules. Among them:

• The trust must be created by one or more individuals.
• At least one person who created the trust must be a borrower on the loan.
• The trustee must have the power to mortgage the property.
• The title policy must show title vested in the trustee.

Each lender has its own process. Some close in the trust. Others close in your individual names and you deed the home into the trust afterward. Ask your lender early so escrow can prepare the right documents.

When you buy, your home is reassessed based on the purchase, whether you take title in your name or in your trust. See our guide on how property taxes are set when you buy.

Moving a home into your own revocable trust later is generally not a change in ownership. The State Board of Equalization explains that the trustor of a revocable trust is treated as the owner, so there is no transfer of beneficial ownership. The Board also explains that a change in ownership can occur when the trust becomes irrevocable, such as after the trustor's death. That is a topic for your attorney and CPA.

1. Do I already have a trust? If so, bring your trust's exact name and date to escrow.
2. Will my lender close in the trust? If not, plan to deed it in after closing with your attorney's help.
3. How should my spouse or co-buyer and I hold title? Our guide on taking title in California covers the common options.
4. Who will check that the deed is recorded correctly? A recorded deed is what puts the home in the trust.

If you are buying in Orange County and want your title planned the right way from the start, I'm happy to help you think through the questions to bring to your attorney and lender. Call or text me at 714.366.8575 | DRE: 01397168, or contact me.