How to Put Your House into Your Trust

In this article I will show you step-by-step how to put your house into your trust. 

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I will also destroy two myths that people—even lawyers—believe because it’s been passed around so many times. 

AND I am going to include a warning to protect you from making a huge mistake on your home transfer. 

First, let me destroy myth #1: 

When you put your house into your trust, you are not really putting your house into your trust: 

You are simply changing legal ownership from you as the grantor to you as the trustee. 

Think of your trust like a relay race. There are three roles, and while you're alive, YOU play all three:

1. Grantor – Creates the trust and gives assets to it
2. Trustee – Manages the trust property
3. Beneficiary – Benefits from the trust property

After you die, your chosen successor becomes the new trustee and manages the property for your named beneficiaries.

What Actually IS a Trust?

A trust isn't a thing or a separate entity. It's a relationship—specifically, a fiduciary relationship where the trustee is legally obligated to manage property in the beneficiary's best interests.

Two Types of Ownership

When you transfer your house to your trust, ownership splits:

1. Legal Title – The name on the deed (trustee holds this)
2. Equitable Ownership – Who enjoys and benefits from the property (beneficiary has this)

Think of legal title as holding the car keys, while equitable ownership is being the person who drives and enjoys the car.

How It Works

You transfer the legal title from yourself as an individual to yourself as trustee. You're transferring ownership from YOU to... YOU. You're simply changing which "hat" you're wearing.

After transfer, you (as trustee) hold legal title while you (as beneficiary) enjoy all ownership benefits.

Why This Matters

When you die, legal title automatically transfers to your successor trustee—no new deed, no probate court. Your successor trustee immediately manages the property for your beneficiaries.

In Plain English: You're telling the government, "I control my house while alive, but when I die, my chosen successor immediately takes over and manages it for my beneficiaries—without court involvement."

Step #1: Ask your title insurance company: "Will my policy still cover me after I transfer the property to my trust?"

Good news: Most title insurance policies remain in effect when you transfer your property into your trust. But you should always verify this with your insurance company.

Quick Reminder: What Is Title Insurance?

Title insurance protects you from ownership problems when you buy a house. Sometimes there are hidden issues—like someone else claiming they own your house, or old unpaid debts that weren't cleared up. 

If someone tries to take your house because of an old problem, the insurance company will defend you and pay you if you lose.

In short: Title insurance makes sure you really own your house and no one can take it away with an old claim.

Here's What You Need to Do:

First: Call Your Title Insurance Company

Tell them exactly what you're doing: "I am transferring the property from my individual name to myself as trustee of my revocable living trust."

Second: Ask If Your Policy Remains in Effect

This is important for two reasons:

1. You get written proof that you're still covered
2. Sometimes they're required to formally approve the transfer

Third: Make sure you get their approval in writing 

Ask them to send you written confirmation that your existing policy continues to provide coverage after the transfer.

Keep this documentation with your trust paperwork—it's proof that your protection remains intact.

Step #2: Notify your lender 

Why? 

Reason #1: You Get Written Proof The lender will confirm in writing that they acknowledge your transfer and won't demand immediate repayment of your loan. This documentation protects you.

Reason #2: It Makes Future Transactions Easier If you later sell the property or need new financing, having this confirmation on file prevents delays and complications.

Reason #3: It Prevents Confusion Your lender won't be surprised when they see the property title has changed. No unexpected phone calls or letters demanding explanations.

What Is a Due-on-Sale Clause?

Many mortgages contain a "due-on-sale clause." Think of it as a trip wire in your loan agreement.

This clause says: If you sell or transfer the property, the entire remaining balance of your loan becomes due immediately.

Imagine owing $300,000 on your mortgage. With a due-on-sale clause, if you transfer ownership, the bank could demand you pay back all $300,000 right now—not over the remaining years of your mortgage.

Sounds scary, right?

Don't Worry—Federal Law Protects You

Here's the good news: Even if your mortgage has a due-on-sale clause, it doesn't apply when you transfer property into your revocable living trust.

There's a federal law called the Garn-St. Germain Depository Institutions Act of 1982 (12 USC 1701j-3). This law makes it explicitly illegal for lenders to enforce a due-on-sale clause when you transfer property into a trust where:

• You remain a beneficiary
• The transfer doesn't change who lives in or uses the property

Step #3: Prepare your deed.  

A deed is the legal document that transfers ownership of property from one party to another. 

You're going to deed the property from yourself (as an individual) to yourself (as trustee of your trust).

Example: The property will be deeded to: "Bobby McGee, Trustee of the Bobby McGee Trust, dated December 20, 2026."

Critical Details You Must Include:

Detail #1: Your Name and Trust Information The deed MUST include:

• Your name as trustee
• The exact name of your trust
• The date you created your trust

This identifies exactly who holds legal title to the property.

Detail #2: The Legal Description 

Copy the complete legal description of your property exactly as it appears on your existing deed (the deed you received when you first bought the property).

Don't paraphrase. Don't abbreviate. Copy it word-for-word.

Detail #3: The Consideration Clause

Every deed needs a "consideration clause."

What is consideration? 

It's something of value exchanged to make a contract legally valid. Think of it as the "payment" that makes the transfer official—even though you're transferring property to yourself.

Common examples:

• "For love and affection" (because, you know, Bobby loves himself)
• "$10 and other valuable consideration"

What this looks like on your deed:

"FOR AND IN CONSIDERATION of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor does hereby quitclaim unto Bobby McGee, as Trustee of the Bobby McGee Trust dated December 20, 2026, the following described real property…"

And no, you do not need to pay yourself $10. 

Detail #4: The Property Parcel Number

Your deed will ask for your property's parcel number. This is a unique identification number assigned to your specific property so the county can send you the correct tax bill and keep accurate ownership records.

Different states call it different things:

• California, Nevada, Arizona: APN (Assessor's Parcel Number)
• Texas: Tax ID
• Illinois: PIN (Property Identification Number)
• Florida (Miami-Dade): Folio Number
• Some Eastern states: SID or Tax Map Number

Where to find your parcel number (four easy places):

1. Your property tax bill (usually printed near the top)
2. Your recorded deed (often in the top-right corner)
3. Your county assessor/tax collector website (search by your address and it will display the parcel number)
4. Your homeowners insurance or title insurance policy

Should I use a quit claim deed? 

Many lawyers and estate planners will tell you, “No.” Welcome to Myth #2. 

They say, “If you use a quitclaim deed, you lose your title insurance and the new owner gets the property with no title protection. So use a warranty deed instead.” 

That is flat out false. 

Let me explain why, but first you need to understand the difference between these deeds.

What Is a Warranty Deed?

A warranty deed (also called a grant deed in some states) includes a "warranty of title." This means the seller is making a promise—a guarantee—to the buyer about the property's ownership.

‍Here's how it works:

Imagine you buy a house and later discover the previous owner failed to disclose an unpaid lien on the property. (A lien is when a bank or creditor says, "You owe us money and this property is our collateral!")

With a warranty deed, you (the buyer) can hold the seller accountable for hiding this critical information. The seller promised the title was clean, so they're on the hook for the problem.

Two Types of Warranty Deeds:

Grant Deed: The seller is responsible for any title problems they caused during the time they owned the property.

General Warranty Deed: The seller is responsible for ANY title problems with the property—not just problems from their ownership period, but problems that go back decades.

A general warranty deed gives the strongest protection to buyers.

What Is a Quitclaim Deed?

A quitclaim deed does NOT include warranty protection.

It essentially says: "I'm transferring whatever ownership interest I have in this property to you—but I'm making zero promises about whether the title is clean or not."

So Why Would You Use a Quitclaim Deed for Your Trust?

Here's the key point: You're transferring the property to yourself.

You (as an individual) are the grantor. You (as trustee) are the grantee.

So unless you have a split personality or enjoy cheating yourself, using a warranty deed is a waste of time and money. 

The Three Advantages of a Quitclaim Deed:

1. Simpler – Less legal language and fewer formalities
2. Faster – Easier to prepare and record
3. Lower cost – Lower cost to prepare and file

And don’t forget:

Your title insurance remains in effect (remember that federal law we discussed earlier?). You're not losing any protection. You're simply changing the name on the title from "you as an individual" to "you as trustee."

A quitclaim deed does this job perfectly.

Step #4: Sign and notarize the deed. 

1. A notary is required in almost all jurisdictions. 
2. You can do this online or go to a UPS center.

Step #5: Record the deed in county records. 

You will record the deed at the county recorder’s office to make the transfer public record. 

Recording is what makes the transfer of ownership legal. You must have publicly recorded evidence of the change in ownership.

If you fail to do this, your property will go through probate court after you die. 

Just google or AI search: Record deed in [your name of county] and follow the steps. 

‍First, Gather Supporting Documents 

• The original deed (not a copy)
• Proof of identity (if submitting in person)

Some counties might require more documents. 

Second, prepare your payment: Most counties required a check or money order; some accept credit cards

Third, Submit your Deed for Recording

You can do this:

• In Person: Visit the recorder's office 
• By Mail: Send originals via certified mail with a self-addressed stamped envelope
• Online/E-Recording: Upload through their portal if available (common in larger counties)

Tip: Include a cover letter explaining it's a trust transfer.

Fourth: Wait for Processing

• The office reviews your deed for compliance
• If accepted, they stamp it with recording information and add it to public records
• You'll receive the original back (2–4 weeks by mail, faster if e-recorded)
• If rejected, they'll explain why—fix the issues and resubmit

Fifth: Confirm the transfer actually happened:

Search public records on your county's website to verify the deed is listed

Sixth: Update your trust documents:

• Add the recorded deed to your trust's asset schedule
• This is typically called Schedule A. It is a list of everything you have added to your trust. 

Warning: Transfers to revocable trusts are exempt from transfer taxes nationwide, but you may need to file a form to claim the exemption.

Step #6: Update your homeowners insurance to reflect your trustee as the owner. 

Why is this important? 

• Right now, your homeowners insurance policy is in your name. 
• After you transfer the legal title of your property to the trust, it is in the name of your trust. 
• Let’s say you die. But your insurance policy remains in your personal name. 
• And let’s say your property’s roof is damaged by hail. 
• The insurer (insurance company) could deny a claim because the named insured (you the grantor) no longer has an insurable interest in the property.

How much does this all cost?  

Drafting the Deed (4 Options):

1. DIY (deeds.com): ~$30
2. Online legal services (RocketLawyer, LegalZoom): ~$100
3. Title Company: ~$350
   
   • Tell them you don't need a title search
4. Estate planning attorney: ~$500

Notarizing the Deed: ~$15

Recording with the County: ~$75

• Cost varies widely by state
• Example: $25 in Dallas County vs. $277 in Philadelphia

Real Estate Transfer Tax: $0

• This is a non-sale transfer (no money changes hands), so no transfer tax or property reassessment in most cases
• Some counties require specific exemption language on your deed—double check to be safe

Total Average Cost: $120–$600

The biggest variable is how you choose to draft your deed.

Disclaimer: This article provides educational information about estate planning and asset protection strategies. It is not legal, tax, or financial advice. Every situation is unique and requires personalized guidance from qualified professionals. Laws vary by state and change frequently. Consult with licensed attorneys, CPAs, and financial advisors before implementing any strategies discussed.