Title of Trust Assets
In one of our last videos we talked about how to put your house your real estate into the name of your trust. And one of the questions we got is, well how exactly do we do that?
I don't know about you, but I'm always looking for ways to streamline and simplify my life. When it comes down to deciding what type of documents will be legal in case something happens during or after we're gone from this world- that's a tough decision!
What if there was just one thing we could do - put our house into an revocable living trust before selling
So you really need to check with your estate planning attorney whoever it was that prepared your revocable living trust on exactly how to move your house into the name of the trust. I would say most estate planning attorneys won't let you leave their office unless you put your house into the trust, or they'll have you sign some type of waiver that you're gonna do it yourself.
But in either case, this is how you do it. And remember you need to talk to your lawyer. This is for information and educational purposes only. So once you've gotten your estate planning binder you'll have a big binder like this one up here and that'll have all of the information regarding your revocable living trust.
To put your real estate into your property what we usually do is just do a quitclaim deed. The quitclaim deed transfer the property from your personal name, into the name of your trust.
That is where we get the question on how exactly to do that. In other words, how exactly do we title that transfer?
Let's go back to the fictitious gentleman that I used in our last example. I think his name was Enrique Smith. Let's say Enrique Smith has a house. He owns the house that he lives in.
And for this purposes, we're not gonna talk about married couples, but it's not much more difficult.
He goes to his estate planning attorney and they create a revocable living trust centered estate plan for him. And he needs to put his house, that he lives in into the name of the trust.
Right now that house is probably titled in Enrique Smith a single-person owner of this house.
And have the legal description of the house, right? If it's a married couple it'll say something like Enrique Smith and Mary Smith, husband and wife as joint tenants with tenancy in common, et cetera. Okay.
So that's how the deed is right now as Enrique sits as a single person or if he was married to Mary. To transfer the real estate from Enrique Smith's name into the name of the trust, like I said we're gonna use a quitclaim deed.
And the quitclaim deed will say from Enrique Smith party of the first part to Enrique Smith, trustee of the Enrique Smith revocable living trust dated March 23rd, 2021. that date at the end is the day that you actually signed your revocable living trust.
So it won't be the day that you actually the quitclaim deed, it will be the day that you had executed your revocable living trust. So in our example, Enrique did it on March 23rd, 2021.
And that is pretty normal because like I said when our clients come into our office we'll have them execute their revocable living trust centered estate plan, the trust the power of a will, power of attorney, advanced directive healthcare power of attorney, HIPAA authorizations and all the documents that go with that.
And then we'll also at the same time, have them execute after they've done those documents, a quitclaim deed transferring the property from their name to the name of the trust.
So once again, the way we would do that is we would have a quitclaim deed that says Enrique Smith a single person party of the first part transfers and it's whatever language is in your jurisdiction transfers to in Enrique Smith, trustee of the Enrique Smith revocable living trust dated March 23rd, 2021.
And then obviously we'd have the legal description after that. And I like to put in the actual physical address as well because that just gives somebody later on many years later on maybe 10, 15, 30, 40 years later an idea of exactly what property just by looking at the deed very quickly what that actually is pertaining to.
So it's very helpful, probably not to you right now but it could be really helpful to an attorney or a title company or even the future owners many years later.
That's how you transfer your house to the name of your trust and the title that you're supposed to use to do that. And that goes the same for your bank accounts and other financial accounts.
Probably right now in Enrique Smith has a checking account. So they Enrique Smith checking account or they Enrique Smith's savings account. And so what Enrique will do is he'll go to his bank and you'll have them change it to Enrique Smith trustee of the Enrique Smith revocable living trust dated March 23rd, 2021.
Now you might be asking why do we have to have such a long name?
Well, it's actually quite simple because right now you could be the trustee of your revocable living trust. So right now in Enrique is the trustee of his trust. But if you were to become incapacitated it might become somebody else.
So it could become his brother John Smith then going forward things would be titled in the name of John Smith trustee of the Enrique Smith revocable living trust dated March 23rd, 2021.
Does that make things clear as mud? It shouldn't, it all actually really goes very simple and banks and title companies and attorneys know how to make this work for you.
If in need to transfer a real property into the name of the trust, contact your attorney or a title company in your area for assistance on how to get it done right the first time.
Because if you don't, I guarantee you there's gonna be headaches and lots of money later on to fix something that could have been done right the first time.
I know I've thrown a lot at you today so that's why we've prepared our free guide on estate planning.
I'll put a link to it in the description below and in the comment section below that so that you can download it and get started in the right direction and to help you out even more.
Watch this video up here and this video up here. If you enjoy this video then it guys please smash that subscribe button and click on the like button and also click on that little bell.
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