Real Estate Planning FAQs

Real estate ownership can create important estate planning and asset protection considerations. Explore common questions about placing property in trusts, transferring real estate, inherited property, probate, ownership structures, and protecting valuable real estate assets.

Real Estate and Estate Planning Basics

  • Why should real estate be included in my estate plan?

    Real estate is often one of the most valuable assets a person owns. Including it in an estate plan can help establish how property will be managed during incapacity and transferred after death while reducing uncertainty for family members and beneficiaries.

  • Can I create an estate plan if I own property in multiple states?

    Yes. Proper planning becomes even more important when you own property in multiple states because your family could otherwise face multiple probate proceedings. A trust-based estate plan can often simplify administration and reduce complications.

  • Should my house be in a trust?

    For many California homeowners, placing a home in a properly established revocable living trust can be an important estate planning strategy. Property held in the trust may be administered and transferred according to the trust's terms without going through probate. Whether a particular property should be transferred to a trust depends on the owner's circumstances and overall estate plan.

  • What happens to my real estate when I die?

    What happens depends on how the property is titled and the estate planning arrangements in place. Real estate may pass through a trust, joint ownership arrangement, beneficiary transfer mechanism, or probate depending on the circumstances.

Real Estate and Trusts

  • What assets should be placed into a trust?

    Common assets transferred into a trust include:


    • Real estate
    • Investment accounts
    • Business interests
    • Bank accounts
    • Valuable personal property

    Not all assets should necessarily be transferred into a trust, so professional guidance is important.

  • Does putting real estate in a trust avoid probate?

    In many cases, real estate that has been properly transferred into a revocable living trust can be administered outside of probate after the owner's death. Creating a trust alone, however, does not transfer property into it; title to the real estate generally must be properly coordinated with the trust.

  • Can I put more than one property in a living trust?

    A living trust may hold multiple properties when appropriate. This can include a primary residence, vacation property, rental property, and other real estate. Each property should be evaluated and properly transferred to the trust when doing so is consistent with the owner's overall plan.

  • Can rental property be placed in a trust?

    Rental real estate may be incorporated into a trust-based estate plan, although additional considerations may arise when the property is owned through an LLC or another business entity. The trust, business structure, liability planning, and succession goals should be coordinated.

Protecting Real Estate Assets

  • Can I protect my home from creditors?

    Depending on your circumstances and state law, there may be strategies available to enhance the protection of your residence and other valuable assets.

  • Does a revocable living trust protect my home from lawsuits?

    Generally, placing a home in a standard revocable living trust does not by itself protect the property from the trust creator's creditors during their lifetime. Revocable trusts are primarily estate planning tools. Asset protection may require different strategies depending on the property, potential risks, and owner's circumstances.

  • Can an LLC help protect rental property?

    An LLC may help separate liabilities associated with rental or investment property from certain personal assets when properly structured and maintained. However, an LLC is not a complete asset protection solution, and insurance, estate planning, ownership structure, and other strategies should also be considered.

  • Should rental properties be owned by an LLC or a trust?

    LLCs and trusts generally serve different purposes. An LLC may be used to address liability and business ownership concerns, while a trust may be used to address estate planning, incapacity, and transfer at death. In some situations, an LLC interest itself may be coordinated with a trust as part of a broader plan.

Inherited Real Estate

  • What happens when I inherit real estate?

    Inherited real estate may be transferred through a trust, probate estate, or another transfer mechanism depending on how the previous owner held the property. After receiving the property, beneficiaries may need to decide whether to keep, sell, rent, or otherwise manage it.

  • What happens if multiple beneficiaries inherit the same property?

    When multiple beneficiaries inherit real estate together, decisions may need to be made about ownership, expenses, use of the property, and whether it should be retained or sold. Clear trust or estate planning instructions can help reduce uncertainty and potential disagreements.

  • Can inherited real estate be kept in a trust?

    Yes. Depending on the terms of the trust, real estate may remain in trust rather than being distributed outright to a beneficiary. This can allow the trustee to continue managing the property according to the trust creator's instructions.

  • Can estate planning help prevent disputes over family property?

    A well-designed estate plan can provide clear instructions about who receives real estate, whether property should be retained or sold, and how interests should be divided. Clear planning may reduce uncertainty and the potential for disagreements among beneficiaries.

Real Estate Ownership and Probate

  • Does real estate always have to go through probate?

    No. Whether real estate is subject to probate depends on factors such as how title is held and what estate planning arrangements are in place. Property held in a properly funded trust or transferred through certain other legally recognized arrangements may avoid probate.

  • What happens to property that was never transferred into my trust?

    If real estate was intended to be part of a trust but was never properly transferred, additional legal proceedings may be necessary after the owner's death. Depending on the circumstances, the property could be subject to probate or another court procedure.

  • Can jointly owned real estate avoid probate?

    Certain forms of joint ownership may allow an ownership interest to pass to a surviving owner without probate. However, the outcome depends on how title is held and applicable law. Joint ownership can also create tax, control, creditor, and estate planning considerations.

  • Can owning property in another state result in another probate proceeding?

    Yes. Individually owned real estate located outside a person's home state can potentially result in an additional probate proceeding in the state where the property is located. Proper trust and estate planning may help reduce the risk of multiple probate proceedings.