Trusts and Property

Creating a trust can be an essential step in managing and protecting your assets for the future. Whether you're looking to establish a revocable or irrevocable trust, understanding the process and how to deed property into the trust is crucial. Let’s explore the steps involved, provide insights into the different types of trusts, and explain how to transfer property into them. If you’re considering setting up a trust, consulting with a trust attorney in Nashville, TN can ensure that your assets are properly protected and your wishes are carried out!

Understanding Trusts: Revocable vs. Irrevocable

Before diving into the process of creating a trust and deeding property into it, it's important to understand the difference between revocable and irrevocable trusts.

What is a Revocable Trust?

A revocable trust, also known as a living trust, allows the grantor (the person creating the trust) to retain control over the assets placed within it. This means that you can modify, amend, or revoke the trust at any time during your lifetime. Revocable trusts are popular because they offer flexibility and help avoid probate, allowing your beneficiaries to access assets more quickly after your passing.

However, because you maintain control over the assets in a revocable trust, they are still considered part of your estate for tax purposes. This means they are subject to estate taxes and may be vulnerable to creditors.

What is an Irrevocable Trust?

An irrevocable trust, on the other hand, is a trust that cannot be altered or revoked once it has been created, except under certain circumstances and with the consent of the beneficiaries. When you place assets into an irrevocable trust, you effectively remove them from your estate, which can provide tax benefits and protection from creditors.

Because the assets are no longer under your control, they are not subject to estate taxes and are generally protected from creditors. However, this also means that you lose the flexibility to change the terms of the trust or reclaim the assets once they are placed in the trust.

Steps to Create a Trust

Establishing a trust involves several key steps, whether you’re creating a revocable or irrevocable trust. Here’s a general outline:

Choose the Type of Trust

Choose between a revocable or irrevocable trust. Consult with an accountant, CPA or tax attorney to understand more about the tax implications of a revocable or irrevocable trust.

Select a Trustee

The trustee is the person or entity responsible for managing the trust's assets according to the terms you've established. You can choose to serve as the trustee of a revocable trust, allowing you to retain control of the assets during your lifetime. For an irrevocable trust, you'll need to select someone else to serve as the trustee.

Draft the Trust Document

The next step is to draft the trust document. This legal document outlines the terms of the trust, including how the assets will be managed, who the beneficiaries are, and how the assets will be distributed after your passing. It's essential to work with a trust attorney in Nashville, TN to ensure that the trust document is comprehensive and legally binding.

Fund the Trust

Once the trust document is drafted and signed, the next step is to fund the trust. This involves transferring assets into the trust, which brings us to the next critical step: deeding property into the trust.

How to Deed Property into a Trust

Deeding property into a trust is a crucial step in ensuring that your assets are managed according to the terms of the trust. Here’s how you can deed property into a trust:

Obtain a New Deed

To transfer real estate into a trust, you’ll need to create a new deed that names the trust as the property owner. This deed should reflect the legal description of the property, the current owner, and the name of the trust.

Sign the New Deed

Once the new deed is prepared, it must be signed by the current property owner (the grantor), notarized, and recorded with the Register of Deed’s Office. Your trust attorney in Nashville, TN can help ensure that all legal requirements are met.

Record the Deed

After the deed is signed, it must be recorded with the local county recorder’s office. Recording the deed officially transfers ownership of the property from the individual to the trust.

Update Title Insurance and Other Documents

Once the property is transferred to the trust, it's important to update any relevant documents to reflect the new ownership. This helps protect the property and ensures that the trust is recognized as the legal owner.

Partner with Rochford Law & Real Estate Title

Creating a trust and deeding property into it can be complex, involving numerous legal steps and considerations. Working with a trust attorney in Nashville, TN can provide peace of mind, ensuring that your trust is set up correctly and that your assets are protected according to your wishes. 

At Rochford Law & Real Estate Title, we specialize in estate planning and real estate law, offering comprehensive services to help you create and manage your trust. Visit us at Rochford Law & Real Estate Title to schedule a consultation and learn how we can help protect your assets and secure your legacy!