When it comes to protecting your most valuable assets, few decisions are as impactful—or as misunderstood—as putting your house in a trust. Doing so can help avoid probate, simplify asset transfers, and ensure your wishes are carried out clearly and efficiently. Here’s everything you need to know about it including how it works, advantages and disadvantages, and how to make it happen.

What is a trust?

For many homeowners, the word “trust” conjures up images of complex legal documents and sizeable estates. The truth is, though, that a trust is a powerful tool available to almost anyone. At its core, it’s a legal arrangement that allows one party to hold and manage assets on behalf of another.

In the context of estate planning, trusts are primarily designed to help manage, preserve, and distribute property during life and after death. Once created, it becomes a separate legal entity capable of owning property (including real estate, i.e., a home) and involves three primary parties:

The Grantor

Sometimes called the “settlor” or “trustor,” this person creates the trust and transfers property into it.

The Trustee

A trustee is the person or institution responsible for managing the trust's assets per the terms laid out in the trust document (the grantor can also serve as the initial trustee if the trust is revocable).

The Beneficiary

A beneficiary is the individual or organization who will receive the benefits of the trust property, either during the grantor’s lifetime or after his/her death.

Different types of trusts exist, but for homeowners, the most relevant is typically a revocable trust as it’s flexible and allows the grantor to retain control over the property while alive, change the terms, add or remove assets, and even dissolve the trust entirely should circumstances change.

Unlike an irrevocable trust—which cannot be easily modified once established—a revocable trust offers adaptability that makes it especially useful for individuals and families who want to keep their options open while still reaping the benefits of legal and financial planning.

How to put your home in a trust

Placing your home in a trust involves these basic steps:

1. Deciding on the type of trust and creating it

The process of putting your house in a trust starts with determining whether or not you need a revocable or irrevocable trust and then creating the trust document itself, typically done with the help of an estate planning attorney who’ll draft the terms based on your specific goals. You’ll need to name the trustee (often yourself, while you're alive and well) and one or more successor who’ll take over in the event of your death or incapacitation.

2. Retitling your property

Once the trust is in place, you’ll need to retitle your property as a critical step: changing ownership from your individual name to the name of the trust. For example, if you currently own your home as “John Smith,” the new deed might say “John Smith, Trustee of the John Smith Revocable Living Trust.”

3. Notifying your mortgage lender

After the deed is updated, you should notify your mortgage lender (if applicable). Most mortgages allow this type of transfer under the Garn-St. Germain Act that protects homeowners from triggering the “due-on-sale” clause simply for placing their home in a revocable trust. Nonetheless, it’s wise to inform the lender proactively.

Why put your home in a trust?

The advantages of placing your home in a trust are many. Here are some of the biggest benefits:

Probate avoidance

Probate is the court-supervised process of settling an estate. While it’s designed to ensure fairness and proper asset distribution, it can be lengthy, costly, and emotionally draining for surviving family members. A trust eliminates the need for probate with respect to assets titled in the trust’s name, allowing for quicker and more efficient transfers.

Additional privacy

Trusts also provide a layer of privacy. Unlike wills, which become public record during probate, trust documents remain private since they don’t go through probate. That means details about your property, your beneficiaries, and your distribution plans stay out of the public eye.

Trustee proficiency

Trusts are also highly effective tools for incapacity planning. Should you become unable to manage your affairs due to illness or injury, your named successor trustee can step in and manage trust assets (including your home) without going through the court system for a conservatorship or guardianship. This ensures that someone you trust is legally authorized to act on your behalf at a time when swift, clear decision-making is likely critical.

Wish specificity

A trust also enables you to lay out specific instructions regarding how and when to transfer your home. You can stipulate that your home not be sold until your youngest child reaches a certain age, for example, or that a surviving spouse is permitted to live in the home for life before it passes to your children.

Added flexibility and more

For families with more complex needs (e.g., blended families, disabled beneficiaries, or out-of-state property), trusts offer added flexibility and control and can also play a role in Medicaid or tax planning—although these uses often require additional legal structuring and professional guidance.

Disadvantages of placing your home in a trust

Despite the aforementioned benefits, there are also a few potential drawbacks to consider as follows:

Legal fees

Establishing a trust typically requires the assistance of an attorney, which means paying legal fees up front. There’s also some administrative work involved in retitling your property and keeping trust documents up to date, and a revocable living trust doesn’t offer protection from creditors nor automatically reduce your tax liability. If your estate is subject to estate taxes or you're concerned about long-term care planning, you may need to explore more complex strategies.

A lack of flexibility

While a revocable trust is typically used for a home transfer, those who use an irrevocable trust face the potential issue of permanence as it’s not possible to amend or revoke the trust in this case.

Diverse assets beyond the home itself

Another important consideration is that placing your home in a trust doesn’t eliminate the need for a comprehensive estate plan. Many people assume that transferring their house into a trust will bypass probate entirely, but this only applies to assets actually held by the trust; other types (e.g., bank accounts, vehicles, or investment accounts) not properly titled in the name of the trust or lacking designated beneficiaries may still be subject to probate. This means that while your home may avoid the court process, your estate could still face delays, expenses, and a lack of privacy for other assets not included in the trust.

Common misconceptions about trusts

It’s not uncommon for people to hesitate when they first hear about trusts due to a lack of understanding. One common myth, for example, is that putting your home in a trust means giving up control. In truth, so long as the trust is revocable and you name yourself as trustee, you retain full control over the property and can still live in the home, rent it out, refinance it, or even sell it if you choose.

Another misunderstanding is that trusts are only for the wealthy. While high-net-worth individuals often use trusts, the benefits—probate avoidance, incapacity planning, and asset management—are just as valuable for families of more modest means. In fact, a trust is sometimes especially important for middle-income homeowners whose heirs may lack the resources necessary to navigate a drawn-out probate process.

Finally, some people believe that placing a home in a trust will automatically protect it from all taxes. While a revocable living trust doesn’t provide tax sheltering on its own, it’s sometimes part of a larger estate planning strategy that includes tax considerations (especially when combined with irrevocable trusts or other tools).

Should you put your house in a trust?

Using a trust to hold your home makes the most sense when you want to simplify the transition of your estate, especially if you’re concerned about probate, incapacity, or property ownership in multiple states. Trusts are also ideal for families with unique or sensitive situations such as second marriages, minor children, or beneficiaries who need oversight or asset protection.

On the other hand, if your estate is relatively small, your assets are held jointly with rights of survivorship, and you live in a state with an efficient probate process, trust benefits may not outweigh the costs—a simple will and careful asset titling perhaps sufficient in this case.

The takeaway: placing your home in a trust

Placing your house in a trust can offer the peace of mind of knowing your home will be handled smoothly and privately in accordance with your wishes. It also helps minimize the legal burden on your loved ones and gives you control over how your most valuable asset is managed and transferred.

Thinking of placing your home in a trust? Consulting with an experienced financial professional is a smart first step. With the right guidance, you can create a plan that protects your home, honors your intentions, and provides long-term security for the people you care about most.

Have questions about whether or not to put your home in a trust or other estate planning topics? Schedule a FREE discovery call with one of our CFP® professionals to get them answered!

Should You Put Your House in a Trust?