Should You Put Your House in a Trust? A Simple Guide

Owning a house is a big deal for most people. It’s where you live, make memories, and maybe even plan to pass it down to your family one day. But have you ever thought about what happens to your house when you’re not around anymore? One way to plan for that is by putting your house into something called a trust. Let’s break it down in an easy way to figure out if it’s right for you.

What’s a Trust, Anyway?

Think of a trust like a special box. You put your house in the box, and you pick someone (called a trustee) to take care of it. You also decide who gets to use or have the house later (those people are called beneficiaries). A trust is a legal way to say, “Here’s what I want to happen with my stuff.” It’s different from just giving your house away because you can still live in it and control it while you’re alive, depending on how you set it up.

Why Put Your House in a Trust?

There are some pretty good reasons people choose to do this:

1. Skip Probate Court: When someone passes away, their stuff—like a house—often has to go through a court process called probate. It can take months, cost money, and be a hassle for your family. A trust is one way your house can skip this step, so it goes straight to the people you chose.

2. Keep Things Private: Probate is public, meaning anyone can look up what you owned and who got it. A trust keeps it quiet—no one needs to know your business or how much you "were worth".

3. Plan Ahead: If you get sick or can’t make decisions later, a trust can make sure your house is handled the way you want. You can set rules, like letting your spouse live there or selling it to pay for care.

4. Save on Taxes (Maybe): For some people with a lot of money, a trust can help lower taxes when passing the house to their kids. But this usually only applies if your estate is worth millions of dollars.

Are There Downsides?

Yep, nothing’s perfect. Here’s what to watch out for:

1. It Costs Money: Setting up a trust isn’t free. Trusts are usually more expensive than wills and can cost thousands of dollars.

2. It’s a Bit of Work: You can’t just say, “My house is in a trust.” You have to sign papers, change the house’s title (like its ownership record), and follow some rules. It’s not hard, but it takes effort.

3. You Might Not Need It: If your house isn’t worth much or you’re okay with probate, a trust might be extra work and expense for no big reward.

So, Should You Do It?

It depends on your life. Ask yourself:

• Do I want my family to avoid probate?

• Do I care about privacy?

• Do I have special plans for my house, like making sure my spouse or kids can use it?

• Can I afford the setup costs?

If you said “yes” to some of these, a trust might be the best fit for you. For example, if you’re married and want your spouse to keep living in the house without any legal headaches after you’re gone, a trust could help. But if your house is your only sizable asset and you’re fine with a simpler plan (like a will), you might not need one.

Putting your house in a trust isn’t for everyone, but it’s a tool that can make life easier for you and your family. Weigh the pros and cons, and see if it feels like a good move for you!

References

1. American Bar Association. (n.d.). Revocable Trusts. Retrieved from https://www.americanbar.org 

   • This explains how trusts work and why they can avoid probate.

2. Nolo. (2023). Living Trust FAQ. Retrieved from https://www.nolo.com

   • A simple guide on costs, privacy, and setting up a trust.

3. Internal Revenue Service. (2023). Estate and Gift Taxes. Retrieved from https://www.irs.gov

   • Info on how trusts might affect taxes for bigger estates.