How to Transfer a Residence from a Living Trust

Transferring a residence from a living trust is simply a matter of conveying title from the trustee to the individual. The trustee holds legal title to the residence while the residence is in trust. Even if you are the beneficiary of the trust, this does not mean you are the owner of the trust property. To become the legal owner, you must have the trustee grant you a deed to the residence. Assuming your living trust allows you to transfer the residence out of the trust, you can do so by taking the following steps.

Things You'll Need

• Trust document
• Trustee
• Legal property description
• Deed
• Public notary

Instructions

1. Review the trust document to make sure there are no restrictions for transferring the residence from the trust. Each trust is unique, but in general, most living trusts allow the transfer of property in and out of the trust.

2. Prepare a deed signed by the trustee, as grantor, to the individual, as grantee.

3. Have a public notary verify or acknowledge the trustee's signature on the deed.

4. Attach to the deed a legal description of the real estate on which the residence is located. Legal descriptions are required before you will be allowed to record the deed as described in the next step.

5. Take the deed to your county recorder's office and have the signed, notarized deed recorded. There is typically a $10 to $20 charge for recording deeds.

Tips & Warnings

• If you were the owner of the residence before it went into the trust (probably your own living trust), then you probably don't need to perform a title search or have title insurance on the residence before you take title from the trustee. However, if you are the first-time owner of the residence, you will probably want to perform a title search and obtain title insurance before you accept title to the property.

• It is easy to forget to record the deed conveying title to the individual. However, failing to record can have devastating results if there is ever a question over who owns legal title to the residence. If you don't record your deed and somebody else does, even if his deed is fictitious, he may be able to assert a legal claim superior to your claim.

References

• Nolo's Estate Planning Basics; Attorney Denis Clifford; 2009
• Nolo's Make Your Own Living Trust; Attorney Denis Clifford; 2009