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Should I Put My Home in a Trust for My Children? A Texas Estate Planning Guide

For many Texas families, the family home is more than just a valuable asset—it’s a symbol of stability, memories, and legacy. If you’re wondering how to pass your home on to your children without the hassle of probate or potential legal disputes, you’re not alone.

One of the most effective ways to accomplish this is by placing your home in a trust. At The Lange Firm in Sugar Land, Texas, we often work with parents who want to protect their children’s future and ensure their wishes are followed. In this blog, we’ll explain what it means to put your home in a trust, how the process works, and whether it’s the right decision for your estate planning goals.

What Is a Trust?

A trust is a legal arrangement that allows a third party (called a trustee) to hold and manage assets on behalf of someone else (the beneficiary). The person who creates the trust is called the grantor.

There are many types of trusts, but for the purpose of transferring your home to your children, the two most common are:

1. Revocable Living Trust – A flexible trust that allows you to make changes during your lifetime.

2. Irrevocable Trust – A more permanent option with potential tax and asset protection benefits.

Why Put Your Home in a Trust?

Placing your home in a trust can offer several benefits, especially when compared to simply leaving the house to your children in a will. Here are some key advantages:

1. Avoids Probate

If your home is in a trust, it doesn’t have to go through probate—the court-supervised process of validating a will. Probate can be time-consuming, expensive, and public. Trust assets are transferred privately and quickly.

2. Ensures a Smooth Transfer

By naming your children as beneficiaries, the trust can ensure that the home goes directly to them without disputes, delays, or legal confusion.

3. Maintains Control During Your Lifetime

If you create a revocable living trust, you can continue living in the home and even sell it, refinance it, or remove it from the trust if your plans change.

4. Protects Privacy

Unlike a will, a trust is not filed with the probate court, meaning the terms and details of your estate remain private.

5. Helps Avoid Guardianship

If you become incapacitated, your successor trustee can manage the home without the need for a court-appointed guardian.

How the Process Works in Texas

Setting up a trust to hold your home involves a few key steps. Here’s what the process typically looks like:

1. Create the Trust Document

You (the grantor) work with an estate planning attorney to draft a trust agreement. This document outlines:

• The name of the trust

• Who the trustee and successor trustee will be

• Who the beneficiaries are (e.g., your children)

• How the home should be managed or transferred

2. Transfer the Home to the Trust

Once the trust is created, you must legally transfer ownership of the home into the trust. This involves:

• Preparing a new deed (often a general or warranty deed)

• Filing it with the county clerk in the county where the home is located

• Ensuring property taxes and mortgage accounts reflect the new ownership

3. Maintain the Trust

If it’s a revocable living trust, you can continue managing the property as usual. If it’s an irrevocable trust, your trustee will manage the property according to the trust’s terms.

Common Questions About Putting a Home in a Trust

Can I still live in the home if it’s in a trust?

Yes, especially with a revocable living trust, you retain full control and the right to live in or use the home.

Will my children owe taxes when they receive the home?

In most cases, your children will receive a stepped-up basis in the home’s value upon your death, minimizing capital gains tax if they sell it. However, tax implications can vary depending on the type of trust and your overall estate, so it’s important to consult an attorney.

What if I have a mortgage?

You can still place a mortgaged home in a trust, but you may need to notify the lender. Texas law and federal rules generally prevent lenders from calling the loan due just because you transferred the home into your revocable trust.

What’s the difference between a will and a trust for transferring my home?

A will goes through probate, while a trust allows direct transfer to beneficiaries without court involvement. Trusts also offer more privacy, control during incapacity, and flexibility.

Risks and Considerations

While placing your home in a trust has many benefits, it’s not a one-size-fits-all solution. Here are some factors to consider:

• Cost: Setting up a trust generally costs more upfront than drafting a will.

• Ongoing Management: Trusts require maintenance, like updating beneficiaries or trustees over time.

• Irrevocable Trust Limitations: Once created, you typically can’t change or revoke an irrevocable trust, which may be a concern if your situation changes.

• Homestead Protection: In Texas, your homestead has certain legal protections that must be preserved when transferring to a trust. An experienced attorney can help ensure you don’t lose these protections.

Why Work With a Texas Estate Planning Attorney?

Transferring your home into a trust is a legal and financial decision with long-term consequences. At The Lange Firm in Sugar Land, Texas, we guide families through the process with care and clarity.

We help you:

• Choose the right type of trust for your goals

• Protect your rights while planning for your children’s future

• Navigate deed preparation, property tax issues, and lender communication

• Coordinate your home transfer with your overall estate plan

We ensure that your trust is not just legally sound—but tailored to your values, assets, and family dynamics.

Alternatives to Trusts

A trust isn’t the only way to pass on your home. Other options include:

• Life Estate Deed: Allows you to live in the home for life, with automatic transfer to your children upon death.

• Transfer on Death Deed (TODD): Lets you name beneficiaries to inherit your home without probate.

• Joint Ownership with Right of Survivorship: May work for some families, though it comes with risks and complications.

Each of these has pros and cons. The best choice depends on your goals, family situation, and type of property.

Conclusion

Placing your home in a trust for your children is one of the most thoughtful steps you can take to preserve your legacy and protect your family. In Texas, trusts offer a flexible, efficient, and private way to transfer real estate outside of probate. But they must be done properly to avoid complications later.

At The Lange Firm in Sugar Land, we take the guesswork out of estate planning. Whether you’re just getting started or updating an existing plan, our team will guide you every step of the way—with personalized attention, local experience, and a deep understanding of Texas law.