The Important Pros & Cons of Placing Your Home in a Trust
Placing your home in a trust is a common estate planning strategy. Like any legal tool, it comes with both benefits and drawbacks. This guide outlines the essential pros & cons of placing your home in a trust, helping you decide whether it’s the right move for your estate plan. Understanding the pros & cons of placing your home in a trust allows you to make decisions that protect your assets and reduce future burdens on your loved ones.
Pros of Placing Your Home in a Trust
1. Avoids Probate
Your home can transfer directly to your beneficiaries without going through the lengthy, public, and often costly probate process. This is especially useful in states like Arizona, where probate can still be burdensome even in simple cases. Arizona law supports simple deed transfers to trusts.
2. Privacy
A will becomes public record during probate. In contrast, a trust remains private. That means your family’s affairs—including who inherits your home—won’t become part of public documents.
3. Continuity and Control
If you become incapacitated, your successor trustee can manage the trust—including your home—without needing court approval. This ensures continuity and smooth administration.
4. Simplifies Transfers of Out-of-State Property
If you own property in multiple states, placing those homes in a trust can help avoid separate probate proceedings ancillary probate in each state.
5. Supports Broader Estate Planning Goals
Trusts allow you to coordinate the distribution of multiple assets—your home, bank accounts, and investments. You can even impose conditions like delaying inheritance until a child reaches a certain age.
Cons of Placing Your Home in a Trust
1. Initial Setup Takes Effort
To receive the full benefits, you must prepare a new deed transferring ownership of your home to the trust and record it with the county. Mistakes—like failing to record the deed—can undo the benefits of the trust. That said, a reputable title company can simplify this process and ensure accuracy.
2. Costs
Legal fees for drafting a trust and recording a deed may range from $3,000 to $6,000 or more with an attorney. However, online services like TrustHandled make this process more affordable for many. While people with complex estates may still need a lawyer, most homeowners can save by using a digital platform.
3. You Still Need a Pour-Over Will
A trust doesn’t eliminate the need for a will. Any assets not placed in the trust will still go through probate unless you take additional steps to include them.
Bottom Line
The pros & cons of placing your home in a trust reflect the importance of planning with care. It can help you avoid probate, maintain privacy, and ease the burden on your heirs—but it requires proper setup and follow-through.
When you weigh the pros & cons of placing your home in a trust, it’s clear that the benefits often outweigh the challenges—especially when supported by trusted tools and professionals.
Before moving forward, remember: your trust must be created before you can place your home in it. For a simple, cost-effective approach, platforms like TrustHandled offer a great starting point for modern estate planning.
Carefully considering the pros & cons of placing your home in a trust can help you make the right decision for your estate, your privacy, and your loved ones’ future.
