Do I put my House in a Trust?

by Kristen Ishihara and Chris Parker with Ishihara & Parker Law Firm PLLC

(Short Answer: Yes—Here’s Why)

When people hear “fund your trust,” it can feel confusing.

What does that actually mean?
Do you just list your assets somewhere?
Or do you actually have to move them?

To make things easier, let’s break it down one asset at a time.

Today’s focus:
Your home.

The Short Answer: Yes, You Should

For most people, most of the time:

Your home should be placed into your revocable living trust.

This is one of the most important assets to get right—because for many families, it’s also the largest.

Why Your Home Belongs in a Trust

1. It Helps Avoid Probate

A trust is designed to allow assets to transfer smoothly after death—without going through probate.

Since your home is such a major asset, putting it in your trust helps ensure:

A faster transition
Less court involvement
Fewer delays for your family

2. It Ensures Your Wishes Are Followed

Your trust spells out exactly what happens to your home.

For example:

It can go to your spouse first
Then pass to your children later
Or go directly to a specific person

Without a trust, those decisions may default to state law—not necessarily what you intended.

“But I Listed My House in My Trust… Isn’t That Enough?”

This is a very common misunderstanding.

Just listing your home in your trust documents (like a “Schedule A”)
does NOT actually move it into the trust.

To properly fund your trust with your home:

👉 You must transfer it by deed

How to Put Your Home Into a Trust

The process is straightforward—but important:

A new deed is prepared
You sign it as the current owner
The property is transferred into the name of your trust
The deed is filed with the county
You receive a recorded (file-marked) copy

Once that’s done, your trust officially owns the home.

What If You Still Have a Mortgage?

Good news:

You can still put your home into a trust—even if there’s a loan on it.

This is completely legal and commonly done.

Can You Still Sell the House?

Yes—absolutely.

If your home is in a trust:

You (as trustee) still control it
You can sell it just like before
The process is usually seamless

In fact, most people don’t even notice a difference during the sale.

Important Reminder: Don’t Forget New Homes

If you sell your house and buy a new one:

👉 That new home needs to go into the trust too.

This can happen in two ways:

The title company purchases it directly in the trust
Or your attorney transfers it afterward by deed

Either way—don’t skip this step.

What About Property Taxes?

Putting your home in a trust generally does not affect:

Your homestead exemption
Property tax rates
VA or other exemptions

In some cases, you may need to sign a simple form confirming it’s still your primary residence—but that’s routine.

Watch Out for Mail Scams

After your deed is recorded, your address becomes public record.

That means you might receive letters saying:

You need to pay a fee to “record” your deed
Or complete additional paperwork

These are often scams.

If you’re unsure—check with your attorney before paying anything.

A Quick Note on Refinancing

If you decide to refinance your home:

Some lenders may ask you to temporarily remove the home from the trust
After refinancing, you can place it back into the trust

It’s not a big issue—just something to be aware of.

Special Situations: Medicaid Planning

This is where things can get more complex.

A revocable living trust:

Does not protect your home from Medicaid
May actually change how the asset is treated

If Medicaid planning is a concern, it’s important to speak with an attorney who specializes in that area—because different tools may be more appropriate.

The Real Benefits of Putting Your Home in a Trust

Beyond avoiding probate, a trust provides:

✔ Faster Transitions

Your successor trustee can act immediately—no waiting for court approval.

✔ Easier Sales

If your family needs to sell the home:

One trustee can handle the process
No need for multiple heirs to sign documents

✔ Better Control

You can structure exactly how and when the home passes to others.

✔ Protection During Incapacity

If you’re unable to manage things:

Your trustee can step in
Pay bills
Maintain the property
Handle repairs or even sell the home if needed

All without court involvement.

The Bottom Line

For most people:

👉 Yes—your home should be in your trust.

It’s one of the most important steps in making sure:

Your plan actually works
Your family avoids unnecessary stress
Your wishes are carried out smoothly

Final Thought

A trust only works if it’s properly funded.

And when it comes to your home, that step is too important to overlook.

If you’ve created a trust but aren’t sure your home was properly transferred—now is the time to double-check.n.

Ready to review your estate plan?
At Ishihara & Parker Law Firm, we help Texas families protect their property and avoid costly mistakes. Contact us today to schedule a consultation and ensure your plan reflects your wishes.

‍