I spend a considerable amount of time educating clients on ensuring that their home is titled into their Living Trust.
First, let's understand that if a titled asset is NOT in your Living Trust then your Living Trust is useless with respect to that asset. For most people, your home is the largest titled asset you have. Your home usually represents the bulk of your estate.
When you work with me for estate planning, I handle the transferring of your home into your Living Trust. I prepare a grant deed to transfer your home into your Living Trust. I take care of the recording with the county in which your home is located.
How this works:
John and Jane Smith own a nice home in Orange County.
I prepare a grant deed that transfers the home from John and Jane Smith as Joint Tenants to John and Jane Smith as Community Property. I want to confirm that the home is a community property asset for the double stepped up basis. My next grant deed is from John and Jane Smith as Community Property to John and Jane Smith, trustees of the John and Jane Smith Revocable Trust Dated January 1, 2006. When this is recorded, it means that the home is now placed in the Living Trust.
It's easy.
But things happen. You refinance, get a reverse mortgage, sell your home, buy additional property and so on. Whatever you do -- make sure that the last deed being recorded for ALL property transactions is reflected in your Living Trust.
Please ensure that your home is always in your Living Trust if you want your Living Trust to be operative and fully funded. If you have any doubts, consult with an estate planning attorney or ask a title company to run a title report. If the last deed recorded for the property shows that your Living Trust owns the property, you did a good job!
