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How to Transfer Property into Trust without unnecessary cost and delay to your estate - YouTube
Channel: Cortes Law Firm
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if you have ever wondered how to
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transfer property into trust
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then by the end of today's video you'll
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have a better idea
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of what to do for the best estate
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planning
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probate and trust administration videos
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subscribe to our channel
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and hit the like button one like this
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and the bell so you'll get notified
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every time we post a new video one of
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our videos that has gotten
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the most views and i'm talking several
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thousands of views
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is how to transfer property into trust
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and one of the things i see
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over and over in the comments section is
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that we don't
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explain exactly how to transfer property
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into trust now we do explain in the
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video that we have
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other videos but today i'm going to talk
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about
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exactly how to transfer real property
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real estate
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your house into the name of your trust
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the reason this has come up again
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is we are constantly creating new
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revocable living trust
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centered estate plans for people and
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when our clients come into us
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we make sure that all of their assets
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are in their name of their trust most
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importantly
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their house their real estate is
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extremely important because if it gets
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left
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out of the trust guess what it needs to
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be probated
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i have seen this come up two times
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already where people have forgotten
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or they just didn't get around to
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putting their real property
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into their name of their trust and it
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just happened again this past weekend
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where a nice young couple husband and
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wife came in and they were trying to
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administer
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his father's estate the father actually
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owned
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three pieces of property one of them was
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a rental property
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and one of them was this house that had
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land connected to it
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he was very diligent in putting as soon
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as he did his trust
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he put his rental property and his home
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into the name of the trust
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and then what happened several years
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later is he had the opportunity
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to acquire the land behind his house
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which made his lot even bigger
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and potentially worth even more money
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for a sale later on
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unfortunately what happened is he took
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ownership of that piece of land
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behind his house in his personal name
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and he didn't put it into his name of
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the trust so guess what happened
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his son and his son's wife were in my
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office trying to figure out what to do
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and
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with real property guys if that if the
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person has already passed away
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the only way to get it transferred from
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the deceased person's name
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into their heirs is to do a probate
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there's just no way around it
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unfortunately but this example
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is a great illustration unfortunately of
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what can happen when you don't put your
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real property
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your house into the name of the trust
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other examples we have seen is
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we have created trust for people maybe
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10 years ago
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or 11 years ago however however long it
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was and at the time we made certain
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that they put their real property into
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their name of the trust
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we actually prepare the paperwork for
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them
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and then what happens and we see this
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over and over again
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is they sell that property and they buy
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a new property and when they buy that
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new property they forget to tell the
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title company
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to that they have a trust and that they
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need to make sure that they title the
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house
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in the name of the trust so guess what
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happens just like in the previous
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example
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if it's not in the name of the trust
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then that property has to be probated
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so that it goes to their heirs and an
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important note to make there
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is that if it goes to their heirs it may
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not go to the areas that they want it to
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see what i'm saying so maybe in the
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trust document it said
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my house goes to my daughter sally
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or it goes to my son enrique if sally
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and enrique are the kids
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and there's no will that says
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differently then they're going to get 50
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percent
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so sally enrique instead of getting an
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entire poll
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100 percent of the real property will
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only get 50 percent
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so it's extremely important not only to
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avoid probate
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but also to make sure that your heirs
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the ones that you want
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to get your real property actually
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receive it under the terms of your
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revocable
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living trust if you come to our office
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and we prepare a revocable living trust
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centered estate plan for you or you
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already have a trust either by us or
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somebody else
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and you have real estate a house or
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rental property
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how do you put it into the name of the
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trust we can do it one of two ways
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the first is pretty quick and easy it's
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a quick claim deed so we simply do a
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quick claim deed from your personal name
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to the name of your revocable living
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trust so that the property is
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transferred
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into the name of your trust the other
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way
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we can do it is to actually give a
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warranty deed and sometimes people will
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do this if they want to make sure that
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they have
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absolutely clean title and really where
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we've seen this happen before
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is where the person who we're doing the
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trust for actually acquired the property
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by quit claim deed and so they want to
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make sure that there wasn't anybody else
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in the chain of title
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that might have a claim so in that case
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we'll actually go to a title company
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and make sure that a title search is
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done and we'll do a
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warranty deed to transfer the property
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from the person's name
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to the name of their trust it can be
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done in either one of those ways
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either with a quit claim deed or with a
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warranty deed
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it's really just up to you and like i
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say the majority of people
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that we help we just do it with a quick
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claim deed and it's a pretty easy
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process
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we prepare the deed for you you sign it
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we have it notarized
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we sign it in front of a notary and then
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we take it down to the county clerk's
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office
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and we file that quick claim deed with
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the memorandum of trust sometimes called
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a certificate of trust
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and we put them together and we file
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them as one document
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and by doing that we have transferred
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property from
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your name to the name of your trust the
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next question is
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what kind of things should you be
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concerned about when you put
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real property into your trust the first
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thing you need to look at
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is your mortgage a lot of times
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mortgages will have what's called a
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do on sale clause and that simply means
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that if you transfer the property
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in any way then the mortgage is due and
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payable
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immediately in other words you transfer
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the property to your son
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or your daughter or to a neighbor at
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that point the mortgage is due
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immediately in full i'm sure you can see
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why a mortgage company would do that if
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they give you a mortgage and then a few
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years later you simply give the property
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away
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the mortgage company is going to want to
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make sure that they get their money
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right so how do we get around this well
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mortgage companies know that people
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transfer property into the name of their
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trust
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and so in most cases it really is not a
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big deal
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but you do need to contact your mortgage
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company to make sure
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that transferring the property from your
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name to the name of the trust
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does not trigger that due on sale clause
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and require you to pay the mortgage
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in full at that moment the next thing
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that people need to be concerned about
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is homeowners insurance or insurance on
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your rental properties
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if you have the property insured in your
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name
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and then you transfer it to your trust
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then in that case you need to make sure
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that your trust
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is also insured under the policy and
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that really
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again is a simple process of calling
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your insurance agent
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and just letting them know you now have
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a revocable living trust
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and you've transferred the property that
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they were ensuring
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from your name into the name of the
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trust and they can usually make that
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change over the phone
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make sure and contact your insurance
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agent so that it gets done right
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and that you do it at the time the
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property is transferred the third thing
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you need to be concerned about when
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transferring property into the name of
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your trust
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is if it's your home your homestead
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exemption so if it's the home that
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you're actually the real property that
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you're actually living in
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you need to make sure that your
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homestead exemption stays
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in place and guys this really depends on
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the county and the state or wherever
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you're living
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i have found that even here in oklahoma
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in some counties
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to say that as long as the person is
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transferring it from their name to their
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personal trust
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then the homestead exemption stays in
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place however i've also heard stories
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from
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other counties in oklahoma and in other
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states that if you do that transfer
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then that homestead exemption comes off
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and you have to reapply
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possibly at a higher number always check
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with your taxing authority
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before you make those changes as well
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very important
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if you have a revocable living trust
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centered estate plan
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and you have real property whether it's
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your personal home
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rental home or apartment buildings
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whatever it is maybe it's your office
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building
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and it's not in the name of your trust
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then you need to reevaluate your estate
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plan
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and make sure that your property is
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titled correctly
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so that your estate plan works correctly
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when it needs to
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you don't want to end up like the
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example that i have given
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where you've worked really hard on your
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estate plan
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and everything that goes on around it
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and you have
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done our annual checkups with us or with
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your estate planning attorney
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only for your heirs to find out later
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that there's one property out there
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that is not in the name of the trust and
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is gonna cost the trust
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three five ten thousand dollars don't
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make that mistake guys i know i've
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thrown a lot at you
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so that's why we've prepared our free
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estate planning guide
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and i'll put a link to it in the
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description and in the comments section
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below
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so that you can download it and get
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started and to help you out even more
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watch
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this video up here and this video up
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here if you enjoyed this video
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then please smash that subscribe button
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and click on the like button
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and click on the little bell so that
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you'll get notified every time we post a
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new video
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have a great day and an awesome week and
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as
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always thanks for watching
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