Transfer Deeds

Why Transferring Your Property into a Trust is Essential

When setting up an estate plan, one of the most important steps is ensuring that real estate assets are properly transferred into your trust. Many people go through the effort of creating a Revocable Living Trust but fail to fund the trust—meaning they do not legally transfer ownership of their assets into it. For real estate, this is done through a transfer deed.

At Vault Estate Planning, we guide you through the process of transferring your real estate into your trust to ensure that your property avoids probate and is protected for your heirs.

What is a Deed?

A deed is a legal document used to transfer ownership of real estate from one party to another. It contains important information such as:

  • The name of the current owner (grantor).
  • The name of the new owner (grantee).
  • A legal description of the property.
  • The type of ownership transfer (e.g., outright sale, gift, or trust transfer).

When transferring property into a trust, a new deed is needed to change the ownership from an individual’s name to the trust’s name.

Why Do You Need to Transfer Your Property into a Trust?

Transferring real estate into a trust is crucial for estate planning. Here’s why:

✅ Avoid Probate – If your property remains in your personal name when you pass away, it will have to go through the probate process, which can be time-consuming and costly for your heirs. A properly funded trust allows your property to pass directly to your beneficiaries without court involvement.

✅ Ensure Control – A trust allows you to dictate how and when your property is distributed. For example, you can ensure that a family home stays within the family or that rental properties continue generating income for heirs.

✅ Incapacity Protection – If you become incapacitated, property owned by your trust can be managed by your successor trustee without court involvement. If the property is still in your name, a court-appointed conservatorship may be required.

✅ Privacy – Unlike a will, which becomes public record after probate, a trust remains private, protecting your family’s financial details from public scrutiny.

✅ Flexibility – While in a Revocable Living Trust, you retain full control over your property, and you can buy, sell, or refinance just as you would if the property were in your personal name.

Types of Deeds Used for Transferring Real Property into a Trust

Not all deeds are the same. The type of deed you use can impact your legal protections and ownership rights. Below are the most common types of transfer deeds used when funding a trust:

1. Quitclaim Deed

A Quitclaim Deed transfers whatever interest the grantor has in the property without making any guarantees about the property’s title. This is often used for transfers between family members or into trusts when title history is not a concern.

✅ Pros:
✔ Quick and simple to execute.
✔ Often used for estate planning transfers to a trust.

❌ Cons:

  • Offers no warranty—it does not guarantee that the grantor actually has legal ownership or clear title.
  • May cause issues with lenders when refinancing.

2. Grant Deed

A Grant Deed transfers ownership of real estate and guarantees that the grantor has not transferred the property to anyone else and that there are no undisclosed liens.

✅ Pros:
✔ Provides limited warranties on the title.
✔ More protection than a quitclaim deed.

❌ Cons:

  • Does not provide full protection against title defects from past owners.

3. Warranty Deed

A Warranty Deed provides the highest level of protection for the buyer (or new owner) by guaranteeing that the grantor holds a clear and marketable title with no undisclosed liens or encumbrances.

✅ Pros:
✔ Offers the most protection for title clarity.
✔ Provides legal recourse if title issues arise.

❌ Cons:

  • More complex and not always necessary for transfers into a trust.

4. Special Warranty Deed

A Special Warranty Deed guarantees that the grantor has not caused any title defects during their period of ownership but does not protect against title issues from previous owners.

✅ Pros:
✔ Used in some real estate transactions and trust transfers.
✔ Limited protection for the new owner.

❌ Cons:

  • Does not fully protect against older title defects.

How to Transfer Real Estate into a Trust

The process of transferring property into a trust involves several key steps:

Step 1: Verify Trust Ownership Details

  • Ensure that your Revocable Living Trust has been properly created and executed.
  • Determine the exact name of the trust and its trustee(s)—this is what will appear on the new deed.

Step 2: Prepare the Appropriate Deed

  • Select the correct type of deed (usually a Quitclaim Deed or Grant Deed for estate planning purposes).
  • Complete the deed document with accurate property descriptions and trust details.

Step 3: Sign and Notarize the Deed

  • The current property owner(s) (grantor) must sign the deed in front of a notary public.
  • This step ensures that the transfer is legally valid and enforceable.

Step 4: Record the Deed with the County Recorder’s Office

  • The deed must be filed with the county where the property is located.
  • Recording the deed makes the transfer official and ensures public records reflect the trust as the new owner.

Step 5: Notify Your Lender and Homeowners Insurance

  • If you have a mortgage, inform your lender of the transfer.
  • Update your homeowners insurance policy to reflect the trust’s ownership.

Common Mistakes to Avoid When Transferring Property into a Trust

🚫 Failing to Fund the Trust – If you don’t transfer the property into the trust, it won’t be protected by the trust’s terms.

🚫 Using the Wrong Deed Type – Choosing the incorrect deed can lead to legal complications or title issues.

🚫 Not Updating Beneficiary Information – Ensure that other documents, such as life insurance policies and bank accounts, align with your estate plan.

🚫 Not Notifying Mortgage Lenders – Some lenders may require specific paperwork to acknowledge the trust ownership.

🚫 Forgetting to Record the Deed – If the deed isn’t filed with the county, the transfer is not legally recognized.

Let Vault Estate Planning Handle Your Real Estate Transfers

At Vault Estate Planning, we take the guesswork out of transferring real estate into your trust. Our estate planning professionals will:

✔ Ensure you use the correct type of deed for your property transfer.
✔ Prepare all necessary legal documents for a seamless transfer.
✔ Guide you through notarization and recording with the county.
✔ Coordinate with lenders and insurance providers to protect your home.

Don’t leave your real estate unprotected—ensure your assets are properly transferred into your trust.