For many Arizona homeowners, placing their home in a revocable living trust is a smart estate planning move. A trust helps your loved ones avoid probate, simplifies the transfer of your home after death, and keeps your estate plan private. But what happens if you want to sell your home, and will it impact your mortgage or insurance? Here’s what you need to know.
Should I Put My Home in a Trust?
Most homeowners can benefit from transferring their home into a revocable living trust. Often, Arizona families are forced to go through the probate process simply because of their loved one’s home. If your home is in a trust when you pass away, it can pass directly to your beneficiaries without the delays and expenses of Arizona probate. This is especially important if you own multiple properties or want to ensure a smooth transition for your family.
Will Putting My Home in a Trust Affect My Mortgage or Insurance?
- Mortgage: Transferring your home into a revocable trust does not trigger the due-on-sale clause in most mortgage agreements. Since you still control the trust and can refinance or sell the property, lenders typically have no issue.
- Homeowner’s Insurance: You should notify your insurance company that your trust now owns your home and request to list the trust as an additional insured on your policy. They may ask to see your Declaration of Trust or Certification of Trust to complete this task. This ensures there are no gaps in coverage.
Do I Need to Take My Home Out of the Trust to Sell It?
No, in most cases, you do not need to remove your home from the trust to sell it. If you are the trustee of your revocable trust, you have the authority to sell the home just as you would if it were in your name. The title company may require a copy of the trust or Certification of Trust to confirm your authority, but the sales process is generally straightforward.
How to Transfer Your Home Into a Trust
The process involves preparing and recording a new deed that transfers ownership from your name to your trust. Our estate planning attorneys can ensure the transfer is done correctly in accordance with Arizona law.
Get Professional Guidance on Protecting Your Home
If you’re considering placing your home in a trust, Windrose Law Center can help. We guide Arizona homeowners through the estate planning process to protect their most valuable assets. Contact us today to schedule a consultation!