Putting a House in Trust: Why, How, Pros and Cons
Putting a house in trust can give you peace of mind and help keep information about your estate private.
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Putting a house in trust can help you avoid the probate process, which can save your heirs time and money while keeping your finances private.
Why put a house in trust?
A trust is a fiduciary arrangement, which means it protects and serves the interests of someone else . Putting your house in trust can help ensure that after you die, ownership of your house passes smoothly and quickly to the person(s) you choose.
A trust accomplishes this smooth transfer of ownership in three ways:
- Trusts don’t have to go through probate. Probate is a court process during which a judge determines the validity of a deceased person’s will and oversees the distribution of their assets. Probate can be a long, expensive and involved process, which can delay beneficiaries from taking possession of assets you want them to have. When you put your home in trust, your trustee can likely skip probate and your beneficiary can take possession of the house faster, without the probate court getting involved.
- Trusts can help keep your affairs private. Unlike wills, which are usually subject to the probate process, trusts aren't public record. This can help avoid family disputes, hurt feelings, squabbles and challenges to your wishes — as well as keep your family's business out of public view .
- Trusts can help make your trustee’s job easier. Not having to navigate a complex probate process simplifies your trustee’s responsibilities and makes their life easier — especially at a time when your trustee may be grieving your loss.
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🤓 Nerdy Tip
Putting your house in trust could have significant tax implications, depending on the type of trust you set up and your situation. Consult with a good financial advisor or an estate planning attorney before placing your home in a trust. How to put your house in a trust
Specific trust laws vary from state to state, but putting a house in trust generally involves these basic steps:
- Decide what type of trust you’d like to have. For example, you may want the trust to be revocable or irrevocable.
- Choose your trustee(s) and beneficiaries. Consider naming backups in case your trustees or beneficiaries die before you do.
- Create the trust document. Make sure it has all the required signatures/notarizations for your state. If you have multiple beneficiaries, be clear about who gets the house.
- Fund the trust.
- Get copies. Give your trustee a copy of the most up-to-date version of your trust.
- Notify relevant parties. Have your county update its property records by giving it a copy of the new deed showing that the trust owns your home.
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Pros and cons of putting a house in trust
Pros
Can help avoid probate.
Helps transfer the asset quickly when you die.
More private than a will.
May protect the asset while you're alive.
May reduce estate taxes and protect from creditors if made irrevocable.
Cons
Costs money to set up.
You cannot change the trust or beneficiaries.
Assets outside the trust may still have to go through probate when you die.
Advantages of putting a house in trust
Putting your house in trust offers a number of advantages, including:
- Avoiding probate. Trust assets typically aren’t subject to probate, which can eliminate time and expense .
- Speed. Your beneficiaries won’t have to wait for the probate court. Generally, they can take possession of the house sooner than they would have otherwise.
- Privacy. Trust assets don't become public record the way probated assets do.
- Protection of assets during the trust creator’s lifetime. If you become incapacitated, the trustee’s job is to maintain the house on behalf of yourself and the person you've chosen to inherit it.
- Estate tax and creditor advantages. Placing your home in an irrevocable trust may have estate tax advantages and potentially shield the asset from creditors .
» MORE: How lady bird deeds work
Disadvantages of putting a house in trust
Before placing your home in trust, it’s also wise to consider these drawbacks:
- Expense. Creating and maintaining a trust is typically more expensive than creating a will.
- Loss of control. If you create an irrevocable trust, you typically cannot change the terms of the trust or change the beneficiaries. (If you create a revocable trust, you usually can change the terms of the trust and change the beneficiaries while you're alive.)
- Other assets may still be subject to probate. Putting your house in trust doesn’t protect assets outside of the trust from probate. So if you want to avoid probate completely, you may want to move your other assets into the trust as well. You may also consider getting a pour-over will or setting up payable on death accounts, transfer on death deeds or joint tenancy deeds. In addition, IRAs, 401(k)s and life insurance policies usually require account holders to name beneficiaries, and those designations typically allow the money in those accounts to avoid the probate process.
» MORE: The 7 steps of estate planning
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- 1. Cornell University Legal Information Institute. Trust. Accessed Oct 5, 2025.
- 2. American College of Trust and Estate Counsel. What is a Revocable Trust and Do I Need One?. Accessed Oct 5, 2025.
- 3. Ohio State Bar Association. Law Facts: Revocable Trusts. Accessed Oct 5, 2025.
- 4. American College of Trust and Estate Council. Marriage, Divorce and Asset Protection. Accessed Oct 5, 2025.
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