If you have already created a trust as part of your estate plan, you are on your way to protect your legacy. But this is just one part of the process. Now, you need to move to the most important step: funding the trust. With that, you can move your assets into the trust’s name.
While it is not difficult, you need to pay attention to the details. With that, your loved ones can avoid probate and fulfill your wishes. Let’s look at how to transfer property to a trust in Wisconsin.
Choose the Property You Want to Transfer
Moving property will depend on whether you have established a revocable or irrevocable trust. With a revocable living trust, you have full control of your assets during your lifetime. However, with an irrevocable trust, a trustee manages the assets, and making changes becomes very difficult.
No matter your trust type, you will need to decide what property you want the trust to own. Many people include their primary residence, a vacation home, rental property, or land. You will need the legal description of the property from your current deed or property tax records.
Sometimes, there are issues with liens, joint ownership, or unclear titles. An attorney or title company can help you sort that out in these cases.
Prepare a New Deed
You will need to create a new deed. With that, you change ownership from you to your trust. In Wisconsin, people use either a Warranty Deed or a Quitclaim Deed:
- A Warranty Deed promises that the title is clear and free of issues.
- A Quitclaim Deed transfers ownership without making any guarantees about the title.
The deed should include:
- Your name is the current owner as the “grantor.”
- The name of the trust as the new owner, known as the “grantee”
- The legal description of the property
A legal professional can draft this for you to make sure it meets all Wisconsin requirements.
Sign and Notarize the Deed
Once the deed is prepared, you must sign it before a notary public. If you are married and the property is jointly owned or qualifies as marital property, your spouse must also sign. You will need to do this even if the trust is in your name.
Along with that, you also need to complete a Wisconsin Real Estate Transfer Return (Form eRETR). This form must be filed when you record the deed.
Record the Deed with the County
After everything is signed and ready to go, the next step is to officially record the new deed with the Register of Deeds in the county where the property is located. When you record it, the transfer becomes a public record. Plus, it makes sure your trust is now recognized as the legal owner.
You will have to pay a small recording fee. The county will also return a copy of the recorded deed for your records.
Update Your Insurance, Mortgage, and Tax Records
Once the deed is recorded, notify your homeowner’s insurance company. You need to ask them to update the policy to reflect that the trust is now the owner.
Most mortgage agreements contain a “due-on-sale” clause. However, transferring your home into a revocable trust under federal law does not trigger this. Still, you will want to be safe and let your lender know.
Also, check with your local tax assessor’s office. In most cases, transferring your home into a revocable trust will not affect your property tax status or homestead exemption. If you are transferring your primary residence, make sure the trust structure does not unintentionally waive homestead rights or protections.
We Can Help Transfer Your Assets
Transferring property into a trust in Wisconsin is not complicated, but it does need to be done correctly. If you’re unsure where to start on how to transfer property into a trust in Wisconsin, we can help.
At the Collins Law Firm, we provide estate planning, estate administration, business law, and elder law services. We proudly serve Southeastern Wisconsin and the Milwaukee area. Our estate planning legal team has decades of experience to help you protect your legacy. Contact us or call (414) 207-6292. Schedule your free and confidential consultation today!