How To Put Your House In A Trust In Georgia

How To Put Your House In A Trust In Georgia - Why Put A House In A Trust

Wondering how to put your house in a trust in Georgia? 

In this article, you’ll learn about: 

  • how to put a house in a trust
  • why you would want to
  • things to beware of
  • whether your house has to be paid off
  • pros and cons
  • tax implications
  • the best type of trust

Keep scrolling to learn more. 

Table of Contents

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How To Put Your House In A Trust In Georgia

So, you’ve decided that you want to put your house into a trust. 

But you’re not sure what that process would even look like. 

Here are the steps you need to take to put a house in a trust in Georgia: 

  • Decide on the Type of Trust. Common choices are revocable and irrevocable trusts (scroll to the end to learn more about this).
  • Choose a Trustee. This person will manage the trust. It can be you or someone else.
  • Draft a Trust Agreement. This document details the terms and rules of the trust.
  • Prepare a Deed. Create a new deed transferring ownership from your name to the living trust.
  • Sign the Deed. Do this in front of a notary public.
  • Record the Deed. File it with the local county recorder’s office or registrar of deeds.
  • Notify Your Insurance Company. Inform them that the property is now in a trust.
  • Update Your Property Tax Authority. This ensures they send bills to the correct address.
  • Maintain the Property. Continue paying taxes, insurance, and any other necessary expenses.

Read More: How Much Do Trusts Cost?

Why Put A House In A Trust?

A lot of our clients come to us to protect their homes from creditors and lawsuits. 

Others want to avoid sending their property through probate in Georgia. 

Here are all the reasons you would want to consider putting a house in a trust for:

  • Asset Protection: Putting a house in a trust can protect it from creditors.
  • Avoid Probate: Trusts help avoid the probate process, making asset transfer after death quicker and more private.
  • Tax Benefits: Some trusts can offer tax advantages or reduce estate taxes.
  • Control: Trusts allow homeowners to set specific rules about how the property is used or distributed.
  • Privacy: Trusts can keep property ownership and beneficiary details private.
  • Plan for Incapacity: If the owner becomes incapacitated, a trust can outline how the property should be managed.
  • Ease of Management: In trusts with multiple properties, all assets can be managed under one umbrella.

Read More: How Much Does It Cost To Put Your House In A Trust?

Things To Beware Of When Putting A Home In A Trust

Putting your house into a trust can be scary. 

If you put it in, can you get it back out? 

Will the mortgage company call your loan due? 

Let’s look at a list of things to beware of when putting your house in a trust. 

We can help guide you through all of this when we set up your trust. 

  • Unintended Tax Consequences: Some trusts can trigger unexpected tax liabilities.
  • Costs: Setting up and maintaining a trust can be costly.
  • Irrevocability: Once some trusts are created, they can’t easily be changed or undone.
  • Mortgage Issues: Transferring a home with a mortgage into a trust can sometimes breach the loan agreement.
  • Management Concerns: If the trust is poorly managed, it can lead to disputes or mismanagement of the property.
  • Choosing the Wrong Type: Different trusts serve different purposes. Picking the wrong one can lead to unintended consequences.
  • Overlooking Details: Failing to fund the trust or update beneficiary designations can undermine the trust’s goals.
  • Liability: If the house in the trust has issues like unpaid taxes, the trust becomes responsible.

Read More: Does Your House Have To Be Paid Off To Put It In A Trust

Should I Put My House In A Trust?

Trusts are tools to manage and distribute property according to your wishes. 

If you should put a house in a trust depends on your situation and goals.

  • Estate Planning Goals: If you aim to avoid probate, a trust can help streamline property transfer after death.
  • Asset Protection: If you’re concerned about creditors, a trust can offer a layer of protection.
  • Tax Implications: Some trusts can provide tax advantages, potentially reducing estate taxes.
  • Privacy Needs: Using a trust can keep the details of your property and beneficiaries confidential.
  • Incapacity Planning: Trusts can outline property management in case of your incapacity.
  • Maintenance Complexity: Managing multiple properties can be easier under one trust umbrella.

Read More: Who Owns The Property In A Revocable Trust?

Does Your House Have To Be Paid Off To Put It In A Trust?

No, your house doesn’t have to be paid off to put it in a trust. 

You can transfer a house with an existing mortgage into a trust. 

However, you should check the mortgage terms.

Some may have a “due on sale” clause that could be triggered by such a transfer.

Read More: If A Property Is In Trust Can It Be Sold?

Pros And Cons Of Putting Your House In A Trust In Georgia

You have to weigh the pros and cons of putting your house in a trust. 

Let’s talk about the benefits and disadvantages of doing it. 

Our attorneys will tell you whether or not your situation is a good fit for a trust. 

We will make sure you accomplish your goals in the simplest and most cost-effective manner. 

Read More: What Are The Disadvantages Of Putting Your House In A Trust?

Benefits Of Putting A House In A Trust

There are several benefits to having your house in a trust. 

Here are the main ones that our clients ask about: 

  • Avoid Probate: Trusts bypass probate, making property transfer after death faster and private.
  • Asset Protection: Trusts can shield your house from potential creditors.
  • Tax Advantages: Some trusts may reduce estate taxes.
  • Control Over Distribution: You dictate how and when beneficiaries receive the property.
  • Privacy: Property details and beneficiary information remain confidential in a trust.
  • Plan for Incapacity: If you can’t make decisions, the trust stipulates how to handle the property.
  • Unified Management: Trusts simplify managing multiple properties as they’re under one structure.

Read More: Why Would You Put Your House In A Trust?

What Are The Disadvantages Of Putting Your House In A Trust?

And here are the potential disadvantages. 

You’ll have to weigh the pros and cons of putting your house in a trust. 

  • Initial Costs: Setting up a trust requires money upfront.
  • Maintenance: Trusts demand ongoing management and potential annual fees.
  • Complexity: Trusts add another layer to your financial and estate planning.
  • Refinancing Issues: Mortgages on properties in trusts can be harder to refinance.
  • Limited Flexibility: Once in an irrevocable trust, changes are tough or impossible.
  • Tax Considerations: Not all trusts provide tax benefits; some might even complicate tax situations.
  • Potential Conflicts: Disputes can arise among beneficiaries or between trustees and beneficiaries.

Tax Implications Of Transferring Property Into A Trust

Putting your house in a living trust changes your taxes in Georgia. 

Here’s an overview of what you can expect. 

  • Capital Gains: If the trust sells the property, it might face capital gains tax based on the property’s original purchase price.
  • Gift Tax: Transferring a property into an irrevocable trust might trigger gift taxes if the value exceeds annual or lifetime exemptions.
  • Estate Tax: A revocable trust won’t reduce estate taxes, but certain irrevocable trusts can remove the property’s value from the taxable estate.
  • Income Tax: Trusts pay income tax on generated income. If property in the trust produces income, the trust might owe taxes.
  • Property Tax: Transferring property might reset property tax assessments, potentially leading to higher property taxes.

Let’s say you want to learn more about the taxes. 

We can provide more information about that on our free consultation. 

Just fill out the form on this page to talk to a trust lawyer.

Revocable vs Irrevocable Trusts For A House

People always ask us if a revocable or irrevocable trust is best for a house. 

It depends on what your goals are. 

Here are the key things to consider for either one.

Revocable Trusts

  • Control: The grantor (person who creates the trust) can change or cancel the trust at any time.
  • Taxation: The house remains part of the grantor’s taxable estate.
  • Flexibility: It can be modified if circumstances or decisions change.
  • Protection: Offers limited protection from creditors.

Irrevocable Trusts

  • Permanent: Once created, changes are difficult or impossible without beneficiary consent.
  • Taxation: The house is removed from the grantor’s taxable estate, potentially reducing estate taxes.
  • Protection: Offers stronger asset protection from creditors.
  • Loss of Control: The grantor typically cannot take the house back without following specific legal procedures.

Talk To A Trust Attorney

If you want help from a trust law firm, fill out the form below. 

At The Hive Law, we understand the importance of:

  • protecting your hard-earned assets 
  • ensuring your family’s future
  • not losing everything to creditors and lawsuits
  • properly (and legally) distributing assets 

We only accommodate a limited number of clients each month.

So don’t miss your opportunity to work with our trust fund lawyers.

Benefits of our trust services:

  • Tailored solutions to fit your unique needs and goals
  • Expert guidance in navigating complex tax and legal matters
  • Preservation of your wealth for future generations
  • Streamlined asset distribution according to your wishes

Avoid the pitfalls of inadequate estate planning strategies:

  • Creditors seizing your assets
  • Lawsuits jeopardizing your family’s financial security
  • Family disputes over inheritance
  • Costly and time-consuming probate processes

Talk soon.

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We run out of free consultations every month. Sign up to make sure you get your free consultation. (Free $350 value.)

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