How to place a property in trust?

Question

I have a SFH that I would like to place into a trust. How would I go about that? Do I have to reach out to a lawyer or something? Or what kind of professional would handle that?

Any recommendations on who to reach out to? Any recommendations on a Chinese-speaking professional who can handle that?

And what sort of fees should I expect to pay for this? Are there going to be tax repercussions, like the property being reassessed for property taxes or anything like that?

Nate Meeker · Answer

Hey @Jerry Poon - @Katie Balatbat should be able to help you, if not point you in the right direction.

There are typically zero tax implications. Consult with your professional of choice though.

Twana Rasoul · Answer

It is great that you want to put your property in a trust...smart!  Please make sure you use a professional that has done this before many times.  I know of someone locally in San Diego that moved all their properties into a trust using a specific attorney and all of his property taxes were reassessed, double or tripled and he's been fighting it for over a year.

Katie Balatbat · Answer

@Jerry Poon

You've received several differing responses all on 1 post, so you can see the value of a professional.  Personally, I think the quotes stated herein are quite low, and it's not surprising given that they seem to be for one of these DIY services, and honestly, you get what you pay for. If your parents only speak a foreign language, you'll definitely want to find someone who can converse with them easily and openly, and that will be a harder find.

As to the tax consequences, it really depends on what you're doing.  Most of the time there are no tax consequences, but that's not always the case and it depends on the person and their situation.  When completing an estate plan, the estate planner is simultaneously weighing estate taxes, gift taxes, income taxes, and property taxes to every proposed transaction and document.

Happy to provide some referrals in the San Diego area if you're willing to work remotely.

*This post does not create an attorney-client or CPA-client relationship.  The information contained in this post is not to be relied upon.  Readers are advised to seek professional advice.

Jeff S. · Answer

Your parents likely need a revocable living trust, @Jerry Poon.  In fact, everyone with any assets should have one.

Our trust includes a Pour-Over Will, Abstract of Trust, Asset transfer letters, Durable Power of Attorney, Advanced Health Care Directives, and several other features including specification of the beneficiaries and trustees.

We got our trust through our CPA, but he used AmeriEstate.com.  They are a large company that specializes in these.  Check out their website.

The cost, in our case, was around $2000 and it included discussions with the AmeriEstate attorney and many questions for our CPA, who specializes in these. Part of the service was to create the grant deed transferring our home into the trust, and then recording it.  There was no reassessment and no taxes due.

Don’t even think of doing this yourself even though you can find websites that suggest you can.  The peace of mind that it was done right is worth the nominal extra cost.  Our plan documents total over 200 pages and are not something I’d even think about attempting myself.

Joe Homs · Answer

@Jerry Poon what kind of trust?  A living trust or land trust.  These are usually generated by an attorney, but I have seen some websites that you can do it for FREE now.

I don't know any Chinese speaking professionals.

Via an attorney you should not pay more than $1000 for these documents and then some recording fees.

Yes, if you do not file these papers correctly with the County recorder's office they MAY reassess the property taxes, which you do not want to happen.  Please make sure that your attorney knows what he is doing or contract a local Title Rep who may be able to help you out.

Good Investing...

Jerry Poon · Answer

yes please!

Jerry Poon · Answer

@Joe Homs I appreciate the response. It would be the trust where parents place their homes in so that their kids don't get taxes upon inheritance of the trust. Wow that is a lot cheaper than I expected. Very good to know!

How to place a property in trust?

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