For many Texans, real estate isn’t just an investment, it’s part of the family legacy. Whether you own a home, a ranch, or rental properties, deciding how those assets will be managed and passed down is an important step in protecting what matters most.
By placing your property into a trust, you ensure your wishes are followed, your estate avoids probate, and your loved ones inherit without unnecessary stress. Working with an experienced trust attorney in Tyler can help you take the right steps to safeguard your real estate and other assets.
A trust is a legal arrangement that allows property to be managed by a trustee for the benefit of your chosen beneficiaries. Unlike a will, a trust can help your family skip the time-consuming probate process, provided the property is properly transferred into the trust before death.
For most property owners, a revocable living trust is a practical option. You keep control of your assets while you’re living and can change or dissolve the trust at any time. After your passing, your chosen trustee can handle the transfer quickly and privately, avoiding court involvement.
Moving real estate into a trust takes more than listing it as an asset. It requires careful preparation and proper filing to make sure the trust, not you personally, owns the property. A trust attorney can handle the paperwork and guide you through the process.
Start by creating or updating your trust agreement. This document identifies your trustee, names your beneficiaries, and explains how your property should be managed or distributed. Your attorney will ensure the trust complies with Texas law and supports your overall estate plan.
Real estate must be retitled in the name of the trustee of your trust. In Texas, this usually involves drafting and recording a General Warranty Deed or Special Warranty Deed with the county clerk’s office. A quitclaim deed can be used in some cases, but warranty deeds are more common for clear title transfers.
Your attorney will make sure the deed is properly prepared and recorded to establish ownership by the trustee.
Once the property is retitled, your insurance company and any mortgage lender should be notified. Federal law generally protects homeowners from having a “due-on-sale” clause triggered when transferring property into a revocable trust, as long as you remain a beneficiary and continue living there. Even so, it’s wise to let your lender know before recording the new deed.
Many Texans wonder whether transferring property into a trust will affect their taxes. In most cases, moving your home or other real estate into your own revocable living trust is not a taxable event. You still control the property, so your income taxes, property taxes, and homestead exemptions remain unchanged.
However, the rules differ for irrevocable trusts, where ownership and control are relinquished. These may affect property valuation or gift-tax reporting. A trust attorney can help you understand:
Trusts offer many benefits, but they’re not the only option for transferring property. Some Texans use other tools as part of their Tyler estate planning strategy.
A beneficiary deed lets you name who will receive your property after your death. You continue to own and control it during your lifetime, and it transfers directly to your beneficiary when you pass away. Texas law recognizes this method, but the deed must be correctly prepared and recorded to be valid. Read more in our blog, Should You Put Your Child’s Name on the Deed to Your House?
Another option is co-owning the property with your intended heir as a joint tenant with right of survivorship. When one owner dies, the surviving owner automatically receives full title. However, this gives your co-owner immediate legal rights to the property, so it’s important to understand the long-term implications before choosing this route.
Placing real estate into a trust offers several advantages that make it a valuable part of any comprehensive estate plan:
A well-structured trust gives you confidence that your property will be protected and managed according to your wishes, no matter what the future brings.
Yes. A revocable trust allows you to add or remove assets, change beneficiaries, or modify terms at any time while you’re living.
It’s always best to work with a trust attorney. Real estate deeds must meet specific legal standards in Texas, and even minor mistakes can lead to title or tax issues later.
Yes. You can transfer rental homes or investment properties into a trust to simplify management and ensure income continues for your beneficiaries. Lease and management documents should be updated to show the trust as the owner.
You can often include property in other states in your Texas trust, but you’ll need to follow the other state’s recording rules. Your attorney can coordinate with local counsel to make sure the transfer is recognized.
If you own real estate in Texas, now is the perfect time to make sure it’s protected. A properly structured trust can preserve your home, your investments, and your peace of mind. Bradley S. Campbell and the team at Campbell Law Firm have helped East Texas families create clear, effective estate plans for more than 35 years. Book a consultation today to start your plan with a trusted Tyler estate planning attorney.
References: Yahoo (Feb. 7, 2023) “Can I Transfer Property into a Trust?” and Motley Fool (June 22, 2020) “How to Include Real Estate Investments in Your Will”
