The short answer to this question is yes, in many cases, Marylanders can put their house in a trust. The next question, then, becomes, should I put my house in a trust?
If you own a home in Maryland, it’s not just where you lay your head. It’s an asset, and for many families in places like Millersville or Severna Park, a house is the anchor for decades of work, planning, and sacrifice. It may be where your children grew up, where holidays were hosted, or where you finally settled after years of commuting up Route 97 or along the Severn River corridor. This asset is worth protecting and passing down intentionally, and a trust may be the ideal way to achieve those goals.
Let’s discuss how trusts function and if putting your house in a trust is the right option for you. When you call Chesapeake Wills & Trusts, we discuss the possibility of placing your house in a trust and other estate-related concerns.
What Is a Trust?
Before we talk about the potential benefits of placing a home in a trust, we should establish a baseline understanding of what a trust is.
A trust is a legal arrangement that allows you to transfer ownership of assets to a structure that you continue to control (for some, actively) while you are alive.
Trusts are dynamic, multi-purpose resources that afford a number of benefits. They are as much an asset management tool as a plan for your assets after you pass. When you speak with our team, we can explain those benefits in the context of your family structure and asset holdings.
Who Are the Parties Involved in a Trust?
The three primary people involved in a trust are:
- The grantor, which is the party that establishes the trust
- A trustee to manage the trust, which may be yourself, while you have the capacity to do so
- Beneficiaries are the people or organizations who will benefit from the trust property
A trust can hold many types of assets, including real estate. That means your home in Maryland can be owned by the trust rather than by you individually, which may not change much beyond creating a clear, orderly plan for asset transfer and management.
Benefits That Compel Our Clients to Establish Trusts
If you’ve done even the slightest amount of research regarding your estate plan, you’ve at least heard or read the term “trust.” If you’ve started seriously pursuing or refining your estate plan, you’ve likely seen several positive references to this legal instrument.
Trusts have become an immensely popular tool, in part because this category of legal structure can enable:
- Greater control over, and specificity about, how and when assets are distributed
- Avoidance of probate in Maryland courts (one of the most common and compelling reasons why our clients have us establish trusts)
- Privacy for family matters (trusts are not filed with the court, and therefore are a more private way of passing down assets)
- Protection for vulnerable beneficiaries, as the trustee aspect provides peace of mind that assets will be disbursed and managed responsibly, even after the guarantor has passed or become incapacitated
- Flexibility as life circumstances change (particularly in the case of revocable trusts)
A trust is not just for wealthy families or complex estates. Many Maryland homeowners find that a trust is the most practical tool for passing property down in a clean, responsible manner that reflects their unique family dynamics.
Possible Risks of Not Having a Trust for Your Home and Other Assets
Passing a house outside of a trust is not always the wrong decision, but it can cause complications that families do not expect. Without a trust, the transfer of your home may:
- Go through the probate court
- Be delayed by creditor claims
- Become the subject of family disputes
- Be detailed in public court records
Too often, we see families struggle with these realities because their deceased or incapacitated loved one delayed creating a well-conceived estate plan.
Different Trust Structures Available to Our Clients in Maryland
Not all trusts are created for the same purpose, and the differences in trust types can be defined. The right trust type and structure depends on your goals, your family situation, the nature of your assets, and the certainty you have in your estate plan (among many other considerations).
Some of the most common trust types we discuss with clients are:
Revocable Living Trusts
A revocable living trust allows you to retain full control, during your lifetime, of how your trust assets will be administered. You can amend it and even revoke it entirely if your circumstances change, or your mind simply changes.
Revocable trusts are often used to:
- Hold a primary residence
- Avoid probate
- Provide clear instructions for asset distribution
- Allow a smooth transition of assets if you become incapacitated
A revocable trust is changeable but legally binding in its current form, should something unexpected happen. In that sense, it is the best of both worlds.
This is one option we will surely discuss when determining how to protect your home from the perils of probate (and other threats that come with an imperfect estate plan).
Irrevocable Trusts
An irrevocable trust generally cannot be changed once it is established. This is a big deal, and it’s why this kind of trust should be used only for specific and proper purposes.
These trusts are often used for asset protection or tax planning purposes, and may be appropriate when:
- Long-term planning is the priority
- Medicaid eligibility is a concern
- The guarantor wants to shield assets from creditors or others who might come after them personally
An irrevocable trust means that the assets are no longer the guarantor’s, from a legal perspective. This affords an added level of protection that might be preferable for, say, a doctor who has a reasonable concern about losing assets in a lawsuit.
Of course, irrevocable trusts are more permanent, so they should only be established with abundant foresight, caution, and care for detail.
Special Needs Trusts (SNT)
Families with disabled loved ones often ask whether a trust can help without jeopardizing benefits. Trust attorneys frequently help clients use these trusts to:
- Preserve the disabled individual’s eligibility for Supplemental Security Income (SSI) and Medicaid
- Provide for supplemental care and comfort
- Protect a beneficiary from financial exploitation or making mistakes with assets allotted to them
If your home will eventually benefit a child or adult with disabilities, working with a trust lawyer from our team is a wise move. Special needs require special consideration in estate planning.
Who Can Create a Trust in Maryland?
In Maryland, almost any adult with the legal capacity can establish a trust. You do not need to meet an income threshold or own multiple properties to do so.
You may be a strong candidate for establishing one or more trusts if you:
- Own real estate in Maryland
- Have minor children
- Have a blended family
- Want to avoid probate
- Are planning for someone (perhaps yourself) with a disability or someone who requires long-term care
Whether you live in Millersville, Severna Park, or elsewhere in Anne Arundel County, our knowledge of Maryland trust law will enable us to craft a plan tailored to your unique circumstances and needs.
How the Trust Creation Process Works
At Chesapeake Wills & Trusts, we believe planning should feel straightforward and stress-free, not daunting. We streamline and personalize the trust-creation process, which often involves:
- A detailed conversation about your goals for your estate plan
- A review of your assets and family structure
- The drafting of customized trust documents
- The coordination of deeds and beneficiary designations
We take the time to understand what matters to you, explain the topics central to your estate plan, and implement the systems that reflect those priorities and concerns.
How We Place Maryland Homeowners’ Houses Into Trusts
Placing a home in a trust requires transferring the title of the property from your name to the name of the trust. The process typically involves:
- Drafting the trust document
- Preparing a new deed
- Recording the deed with the county land records
Once the house is titled in the trust, the trust becomes the legal owner. You still live in the home, maintain it, and pay taxes and insurance just as you always have.
Many homeowners worry that transferring a home into a trust means giving something up. In reality, a properly structured trust preserves your control while simplifying what happens later.
Other Assets You Might Place in a Trust
A trust is rarely limited to a single asset. In addition to a home, clients often place the following into a trust:
- Bank accounts
- Investment accounts
- Vacation properties
- Life insurance proceeds
- Personal property of value
Our trust attorneys ensure that each of our clients’ assets is accounted for in a comprehensive estate plan.
How Our Maryland Attorneys Can Help Create an Estate Plan That Works for You
As Maryland trust attorneys, our role is not just to draft documents. We take a personal, detail-oriented approach that often includes:
- Deciding which trust structure (if any) fits your needs
- Coordinating trusts with wills and powers of attorney
- Addressing any special needs planning concerns
- Ensuring your estate plan’s compliance with Maryland law
- Ensuring you are completely at ease with your estate plan, as few matters could be more consequential
Many of our clients come from Millersville and Severna Park, though we also serve clients in other areas of Maryland. We understand local laws, taxation, real estate concerns, and court procedures that may be relevant to estate planning.
When the Plan Becomes Reality: What Happens After the Grantor Passes Away or Becomes Incapacitated?
After the grantor passes away or is no longer able to manage your affairs competently, a successor trustee takes over management of the trust. The trustee’s role frequently includes:
- Managing trust assets
- Paying expenses and taxes
- Distributing property according to the instructions within the estate plan
Choosing the right trustee is critical, and we can help you evaluate the candidates. Some families select a trusted individual, while others prefer a professional fiduciary.
Chesapeake Wills & Trusts to Discuss Your Plan for the Future
If you are asking yourself whether putting your house in a trust makes sense, we invite you to have that conversation with us. We expect that this is not the only question you have, as estate planning is a consequential process that our team knows well.
At Chesapeake Wills & Trusts, we help Maryland families make thoughtful decisions about their homes, their assets, their future, and their loved ones’ best interests. We carefully structure trusts to meet the individual needs of our clients. Call Chesapeake Wills & Trusts or contact us online to discuss your options.