Removing Real Estate From a Revocable Trust

By Maggie Lourdes

Revocable trusts are often implemented to avoid probate. A trust's maker, or grantor, retains the power to fully revoke or amend a revocable trust. A trust is governed by its terms and adding or removing real estate from a trust is a power that is usually specifically listed. If a trust lacks this provision, an amendment may be legally required before real estate can be added or removed. Trust requirements may vary, depending on state law.

Trusts and Deeds

Trust real estate is removed from a trust via a property deed. There are several types of property deeds. If a grantor wishes to remove real estate from the trust and re-assume ownership of the property, a quitclaim deed is appropriate. Deeds of this type do not make warranties by the grantor. If trust property is being sold to a third party, a warranty deed is generally used. Warranty deeds ensure that properties are free of title defects.

Trustee's Role

A trustee is the party who must convey property out of a revocable trust. The grantor generally acts as the trustee of a revocable trust during his lifetime. He must sign the deed, print or type his name below his signature and state that he is acting on behalf of the trust. Once the deed is signed, it is recorded in the register of deeds in the county where the real estate is located.

Protect your loved ones. Start My Estate Plan

Ramifications for Removing Property

Property removed from a trust may be subject to probate when the grantor dies. Probate creates delays for heirs and incurs court costs that do not apply to trusts. Removing property from a trust can also result in intestate succession distribution, which means state law determines heirs to the estate rather than the decedent. A pour-over will can ensure that a decedent's property is conveyed into his revocable trust if it is not included in the trust at the time of death.

Amending Trust Schedules

Trusts generally have an attached asset schedule that lists all of the property in the trust. An asset schedule allows the trustee to easily locate and identify trust assets when the grantor dies. When property is removed from a trust, the trustee should update the asset schedule for convenient reference and accuracy. The new asset schedule should be dated, identify the property removed and be attached to the trust.

Protect your loved ones. Start My Estate Plan
Removing a Successor Trustee


Related articles

How to Abolish a Family Trust & Get the Money

A family trust is a revocable or irrevocable trust designed to distribute assets among family members, typically from an older generation to a younger generation. Family trusts are popular, in large part because a properly structured trust can prevent estate taxes from being assessed on the estate of the trust grantor when he dies. The ease with which a trust can be revoked depends largely on whether the trust is revocable or irrevocable.

How to Fire a Trustee

A trustee is powerful -- he must manage trust property and distribute trust assets to trust beneficiaries in accordance with the terms of the trust. Therefore, knowing how to fire a trustee if and when he abuses his position is vital. Generally, the power to fire a trustee depends on the terms of the trust, state law and the wishes of the trust's beneficiaries and grantor -- that is, the person who created the trust.

Changing a Family Trust Deed

A family member may have placed his property into a family trust as part of his estate planning process. Under the advice of his accountant, attorney or other professional or for a myriad of other reasons, he may have decided to remove the property from the trust or place the property, or a portion thereof, into a different trust.

LegalZoom. Legal help is here. Start Here. Wills. Trusts. Attorney help.

Related articles

How Much Money Do You Need to Start a Living Trust?

A living trust is used for estate planning and acts as a holding area for property. The person who creates the trust ...

How to Execute a Living Trust

A living trust allows a person known as a trust grantor to place his assets under the administration of a trustee, who ...

What Can a Beneficiary Do If the Trustee Refuses to Deal?

The trustee of a trust is required to act as a legal fiduciary on behalf of trust beneficiaries. If the trustee refuses ...

How to Remove a Trustee From a Deed

When property is held in a trust estate, the appointed trustee generally holds title as representative of the trust for ...

Browse by category
Ready to Begin? GET STARTED