Leave a Message

Thank you for your message. We will be in touch with you shortly.

Living Trusts

Homeowner Information Todd Kroupa November 17, 2022

Estate planners often recommend Living Trusts as a viable option when contemplating the manner in which to hold title to real property. When a property is held in a Living Trust, title companies have particular requirements to facilitate the transaction. While not comprehensive, answers to many commonly asked questions are below. If you have questions that are not answered below, your title company representative may be able to assist you, however, one may wish to seek legal counsel.
 

Who are the parties to a Trust?

A Family Trust is a typical trust in which the Husband and Wife are the Trustees and their children are the Beneficiaries. Those who establish the trust and transfer their property into it are known as Trustors or Settlors. The settlors usually appoint themselves as Trustees and they are the primary beneficiaries during their lifetime. After their passing, their children and grandchildren usually become the primary beneficiaries if the trust is to survive, or the beneficiaries receive distributions directly from the trust if it is to close out.
 

What is a Living Trust?

Sometimes called an Inter-vivos Trust, the Living Trust is created during the lifetime of the Settlors (as opposed to being created by their Wills after death) and usually terminates after they die and the body of the Trust is distributed to their beneficiaries.
 

Can a Trust hold title to Real Property?

No, the Trustee holds the property on behalf of the Trust.
 

Is a Trust the best way to hold my property?

Only your attorney or accountant can answer that question. Some common reasons for holding property in a Trust are to minimize or postpone death taxes, to avoid a time consuming probate, and/or to shield property from attack by certain unsecured creditors.
 

What taxes can I avoid by putting my property in trust?

Married persons can usually exempt a significant part of their assets from taxation and may postpone taxes after the first of them to die passes. You should check with your attorney or accountant before taking any action.
 

Can I homestead property that is held in a Trust?

Yes, if the property otherwise qualifies.
 

Can a Trustee borrow money against the property?

A Trustee can take any action permitted by the terms of the Trust, and the typical Trust Agreement does give the Trustee the authority to borrow and encumber real property. However, not all lenders will lend on a property held in trust, so check with your lender first.
 

Can someone else hold title for me “in trust?”

Some people who do not wish their names to show as titleholders make private arrangements with a third party Trustee; however, such an arrangement may be illegal, and is always inadvisable because the Trustee of record is the only one who is empowered to convey, or borrow against, the property, and a Title Insurer cannot protect you from a Trustee who is not acting in accordance with your wishes despite the existence of a private agreement you have with the Trustee.

Recent Blog Posts

9 Cost-Effective Best Ways to Improve the Energy Efficiency of Your Alpharetta Home

Smart savings and simple upgrades for a more efficient lifestyle.

Real Estate News

DRB Homes Acquires 35-Acre Parcel in Alpharetta for Future Development

The land, located along Charlotte Drive near Rucker Road and adjacent to the Crabapple community in Milton, was purchased for approximately $11.3 million on March 14, … Read more

Real Estate News

Todd Kroupa Named #1 Individual Agent for GCI at Berkshire Hathaway HomeServices Georgia Properties

Kroupa Team Real Estate is beyond thrilled to announce that Todd Kroupa has been recognized as the #1 Individual Agent for Gross Commission Income (GCI) in General Br… Read more

Real Estate News

Todd Kroupa Recognized Among Top 28 out of 14,000 REALTORS® in 2024 with Atlanta REALTORS® Association

Atlanta, GA – The Kroupa Team Real Estate is thrilled to announce that Todd Kroupa has been recognized among the Top 28 Individual Agents by volume out of more than 14… Read more

Tips for Buyers

How Interest Rates Are Shaping The House Market in Atlanta

Navigating Market Shifts: What Buyers and Sellers Need to Know in 2025

9 Essential Home Office Design Tips

With these tips, your home office can be a place where work feels effortless.

8 Amenities that Increase Home Value

Want to maximize your home’s value? Start with these must-have upgrades and get ready to see results.

5 Benefits of Owning a Home with Natural Light

Experience the warmth and wonder of natural light in your Alpharetta home, making every day feel like a bright new beginning.

Smart Home Features Every Modern Homeowner Should Consider

Discover the smart home features that simplify your life, save energy, and bring modern convenience to your day-to-day.

Work With Us

Selling a home or property with the Kroupa Team assures you the highest professionalism and real estate consultation available in North Metro Atlanta communities. With over 18 years of experience marketing and selling luxury homes, equestrian properties, and residential real estate, you will receive unsurpassed customer service and guidance from listing to sell.