Though it may be unpleasant to consider, it is essential to have a plan in place for what will happen to your property after you pass away. In 2025, with rising home values and more complex family dynamics, creating a trust for home helps to ensure that your property seamlessly passes to your intended beneficiary without the time and cost burdens of probate.
Trusts aren’t simply for those with significant wealth. If you’re like most people, your home is probably your most valued asset.
Having a plan in place for that asset, as well as the people who live in and rely on it or who are expecting to inherit it, can make life easier for your heirs when you pass away.
Creating a Trust for Home: Is It Different Than a Will?
Many of us are under the assumption that a will is the only document needed to ensure all of our assets go to their intended heirs. However, the process is not as simple as you may think.
Wills are subject to probate court and even contested by family members and others. This can cause your family and heirs to wait months or even years to receive what you’ve left them.
In terms of a home, leaving it to an heir in your will can result in a lengthy wait and a possible contest from another family member. This doesn’t even take into account the amount of money your family will spend going through probate.
However, there is another step you can take to ensure your loved ones receive your home and other assets without the need for a will or possible probate proceedings: a living trust.
What Is a Living Trust?
A trust is a legal mechanism in which you can put your money, possessions, and other property so that you or your heirs can use them later. Trusts can give you more control over who gets your money and belongings after you die than a will.
Unlike a will, a living trust allows you to manage your assets while you’re alive and specify how and when your heirs will receive them after your death. Creating a trust for home can also help you pass on specific assets before you die.
One of the most common reasons people choose to create a trust for home is that assets in a trust do not go through probate when you die – whereas everything you leave in your will does.
Probate is not only time-consuming, but it’s also public. That means anyone can know what was in your estate, how much it was worth, and who received it — opening the door for disputes. Using a trust to transfer your home helps avoid this.
Want to learn more about how probate works in Nevada? Check out Nevada’s Probate Resource.
The Pros of a Living Trust for Your Home
Trusts are pretty well protected from many of the legal and financial burdens experienced with a will. For example, depending on the particular language of your trust’s foundation document, you can usually sell your residence after putting it into a trust.
If you’re still paying down your mortgage, you can put your house in a trust; there will be no “due on sale” condition if you do so. By reducing your taxable estate, putting your residence into particular kinds of trusts can also help you qualify for Medicaid.
In 2025, estate tax exemptions remain historically high, but putting your home into a trust may still help families reduce their taxable estate in the future.
The most important advantages to creating a trust for home include:
- A trust, rather than a will, can allow you more control over who gets your possessions after you pass and how they are distributed.
- Unlike anything passed down through your will, property in a trust will not go through probate.
- Trusts can also aid in the transfer of assets before death.
- Putting your property in certain types of trusts can help you qualify for Medicaid by lowering your taxable estate.
Revocable vs. Irrevocable Trusts
The main advantage of establishing a revocable trust is that it gives a pre-arranged method to ensure that your assets are managed and preserved if you become disabled. It can also include all of your estate plan’s initial clauses – but you are free to change them.
An irrevocable trust, on the other hand, is one that cannot be amended or terminated after the instrument has been signed. This distinguishes it from a revocable trust, which can be changed or terminated at any time and only becomes irrevocable when the trust creator, or grantor, passes away.
Although they can’t be changed, irrevocable trusts are particularly useful for protecting assets from creditors and nursing homes. Some benefits include:
- The ability to avoid or minimize estate taxes
- Helping you qualify for Medicaid
- Providing asset protection from creditors, including assisted living or nursing facilities
Need more details on different types of trusts? Visit Nolo’s Living Trust Guide.
Final Thoughts on Creating a Trust for Home
When considering your estate planning options, creating a trust for home is a step that every homeowner should consider. It offers peace of mind, protects your heirs, and avoids the cost and complexity of probate.
If you aren’t sure where or how to get started, reaching out to a qualified estate planning attorney is the best next step. As a local Northern Nevada real estate professional, I’m happy to connect you with trusted estate attorneys and other vendors who can support you.
Need a referral or more information? Reach out to me here.
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