Deeds Transferring Real Estate to Family Trust
Title to real estate is evidenced through a deed showing you own the real estate.
The way you transfer real estate into a family trust is by signing a new deed showing your family trust as the owner. This deed is then recorded with the county recorder in the county in which the real estate is located.
When transferring real estate that is not considered residential (which is, generally, your home and a 1 – 4 unit building), if you owe money on a mortgage on the property, you need to make sure that transferring the real estate to your family trust will not cause the lender to call in the loan, thereby resulting in your having to scramble to find a new loan for the property. This would not be a good thing if you have a favorable interest rate on the loan.
You also need to make sure that the transfer of the real estate to your family trust will not trigger a property tax reassessment. This can be avoided by filing a Preliminary Change of Ownership Report with the county tax assessor.