Page 29 - Home Buyers and Sellers Handbook English - California

Is a Trust the best way to hold my property
Only your attorney or accountant can answer the question; some common reasons for holding property in a
Trust are to minimize or postpone death taxes, to avoid a time consuming probate, and to shield property from
attack by certain unsecured creditors.

What tax 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 which 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 not be advisable 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.

Reprinted with permission from the California Land Title Association.

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