How to set up a trust for a house?

Setting up a house trust could be the strategic way for property protection and management with the assurance of smooth transfer of ownership. The brief guide is given below:

1. Purpose and Kind of Trust: State very clearly why you want to set up a trust, whether it's estates, asset protection, tax benefits, etc. Common options are a revocable living trust that allows changes during your lifetime and an irrevocable trust that provides better protection of the assets but is difficult to change.
2. Naming a Trustee: Select an individual or professional trustee you have faith in to manage this trust. Quite often, for a revocable trust, it would be yourself; for the irrevocable trust, it would be another person.
3. Preparation of the Trust Document: Consult an estate planning attorney in preparing a trust document stating the trust's purpose, duties of the trustee, how the house is to be managed, and how it is to be distributed. Identify the beneficiaries, stating any special conditions.
4. Deed the House to the Trust: Take the title of the property and transfer it into the trust's name. Normally this is performed by quitclaim deed. File the new deed with your county recorder's office. Notify your mortgage lender and update your homeowner insurance to reflect trust ownership.
5. Inform Beneficiaries and Review: Be sure to inform the trust beneficiaries of the terms. The trust should, from time to time, be reviewed and updated with any changes in one's current situation.
6. Consult Professionals: With the help of legal and tax professionals, ensure adherence to local laws and manage related taxes.

By doing so, one will be saving the property, avoiding probate, and seeing that his or her wishes are carried out. At One Pacific Trust, our vision is to be the leading provider of trust services.