Buying a House in a Trust or in Your Personal Name: What Orange County Buyers Need to Know

Before you buy your next home, there is one decision that could save your family months of unnecessary legal complications down the road. Should you buy in your trust, or in your personal name?

Hi, I'm Paula Aragone

I am Paula Aragone, CEO and President of Aragone & Associates here in Orange County. For more than 23 years I have helped hundreds of families buy, sell, invest in, and transition real estate through every stage of life, from first time homebuyers to luxury properties to trust and inherited estates, all while maximizing value and minimizing stress.

If You Already Have a Living Trust, Buy Directly In Its Name

If you already have a living trust, the best practice is generally to purchase your home directly in the name of your trust from the very beginning. Can you buy the property in your personal name first and transfer it into your trust later? Absolutely. But should you? Usually not. Here is why.

I have seen many people purchase a home with every intention of transferring it into the trust after closing. Then life happens. Between moving, work, family, vacations, and everything else, weeks turn into months, months turn into years, and before they know it the property is still titled in their individual name.

If your trust is already established before you open escrow, your realtor, escrow officer, title company, and estate planning attorney can all work together to ensure the property is vested correctly from day one. At Aragone & Associates, this is one of the conversations we have before escrow even opens, because we believe that protecting your investment starts long before the closing date. It is simply part of our commitment to helping clients maximize value while minimizing stress.

Why This Matters

If a property is not properly transferred into your trust, it could be subject to probate depending on your individual circumstances. In California, probate fees are generally calculated based on the gross value of the property, not the equity, and the process can take months, and in many cases more than a year, depending on the complexities of the estate.

I have met families who believed everything had been handled correctly, only to discover after losing a loved one that the property was never transferred into the trust. That single oversight turned what could have been a straightforward transition into months of court proceedings during an already difficult time. The good news is that with a little planning up front, situations like these are often preventable.

What To Do Next

If you already have a trust, let your realtor know before you begin the home buying process, so the realtor, escrow officer, title company, and estate planning attorney can coordinate everything correctly from the start.

If you do not have a trust yet, purchasing a home is often an ideal time to speak with an estate planning attorney about whether establishing one makes sense for your situation. And if you do not already have an estate planning attorney, we would be happy to introduce you to experienced professionals we know and trust.

If you are buying a home, or you already own property and are not sure how title is currently held, download our free Trust Property Checklist. It is designed to help you make sure that one of the largest investments you will ever make is protected, both before and after your escrow closes.

Work With Paula Aragone

If you have a trust or real estate question you would like Paula to answer in a future episode, leave it in the comments on YouTube or reach out to our team directly. To learn more about protecting your property through a trust, visit our Trust specialty page and download the free Trust Property Checklist.

Paula Aragone and the team at Aragone & Associates have helped hundreds of families, trustees, attorneys, and fiduciaries across Orange County navigate complex trust and estate situations. We maximize value and minimize stress. Strategy is what we do.