If you own a home, you know your name on the title proves ownership. If you decide you’d like to transfer ownership, the name on the title changes. According to an article from ABC 45 News, “How, and why, to set up a trust for your house,” you can transfer ownership of your home to a revocable living trust.
One of many reasons to put your home into a trust is to make it easier for your executor and heirs if your estate plan includes passing the home to your children. Transferring your home to a revocable living trust involves certain legal and tax benefits. Here’s a look at why this might be something to discuss with your estate planning attorney.
In some jurisdictions, you may need to have a new deed created—your estate planning attorney will know how it works in your region. The deed is then recorded with the local county recording office.
In most cases, the home’s original owner names themselves as the trustee to maintain control of the property, although someone else can be named as a trustee. An adult child is often named as the trustee if the original owner is ready to take this step.
Trusts have many applications for estate planning as well as tax planning and asset protection. Depending on the type of trust your estate planning attorney determines is best, a trust can be established to protect the home from creditors as well as passing directly to heirs without needing to go through probate court.
In a revocable living trust, the settlor (the person who creates the trust) can make changes or even close the trust at any time. This is appealing to some people because they want to be able to be in charge. When the settlor dies, the property is distributed to beneficiaries according to the directions in the trust.
Trusts are a popular means of circumventing the need to go through probate court, which can cost thousands and take months or years to complete.
Senior homeowners should consult with an estate planning attorney to learn how placing their home in a trust will impact their overall estate plan and Medicaid eligibility. If there is no estate plan currently in place, this is something to address as soon as possible. We don’t know what the future holds, but we do know that having an estate plan provides peace of mind for all concerned.
We have an excellent NM estate planning attorney ready to serve you. Our clients come from all over New Mexico, including cities like:
Alamogordo
Albuquerque
Alto
Belen
Farmington
Las Cruces
Los Lunas
Ruidoso
Santa Fe
Socorro
T or C
Having the right NM estate planning lawyer makes all the difference. Set up a free 15-minute phone call today to learn more. We at Rio Grande Estate Planning, LLC are committed to prioritizing your peace of mind.
Reference: ABC 45 News (March 14, 2025) “How, and why, to set up a trust for your house”