🏡 What Is a Trust Property and How Does It Work?

If you’re exploring real estate or estate planning, you may have come across the term “trust property.” But what does that actually mean—and why does it matter?

Whether you’re buying, selling, or inheriting property, understanding how a trust works can make a huge difference in the process. Let’s break it down in simple terms.

💼 What Is a Trust Property?

Trust property refers to any real estate or asset that’s held in a legal trust, rather than under an individual’s name. A trust is a legal agreement where one party holds property for the benefit of another.

📌 Example:

Instead of the deed saying “John Smith,” it might say something like “The Smith Family Trust.”

This is often done as part of estate planning to avoid probate, protect assets, and make it easier for heirs to inherit property.

👥 Who Are the Key Parties in a Trust?

There are usually three important roles in a trust:

1. Trustor (or Grantor):

   The person who creates the trust and places property into it.

2. Trustee:

   The individual or institution responsible for managing the trust and making decisions about the assets.

3. Beneficiary:

   The person or people who benefit from the trust—often children, spouses, or heirs.

Sometimes the trustor and trustee can be the same person while they’re alive, but a successor trustee is named to take over after death or incapacitation.

🏠 Types of Trust Property

Real estate is one of the most common assets placed into a trust. That includes:

• Primary residences

• Rental properties

• Vacation homes

• Land or lots

But a trust can also hold other types of property like bank accounts, investments, and even valuable personal items.

🔐 Two Common Types of Trusts in Real Estate:

• Revocable Trust (Living Trust):

  Can be changed or canceled by the trustor during their lifetime. The property avoids probate and smoothly passes to heirs.

• Irrevocable Trust:

  Cannot be altered once created (without legal action). Often used for tax and asset protection strategies.

✅ Benefits of Holding Property in a Trust

So why do so many people in Lodi, Stockton, and across California choose to place property into a trust?

🏡 Major Benefits:

• Avoid Probate:

  Property passes directly to heirs without going through the long, costly court process.

• Privacy:

  Unlike a will, trusts don’t become part of the public record.

• Asset Protection:

  Some trusts can protect property from creditors or legal claims.

• Easier Management:

  If the trustor becomes incapacitated, the trustee can step in and manage the property seamlessly.

• Smooth Inheritance:

  Successor trustees can transfer property quickly, avoiding delays for beneficiaries.

🧭 Final Thoughts

Understanding how trust property works is especially important if you’re planning your estate—or if you’re buying or selling a home that’s held in trust.

Here in the Lodi area, we help clients navigate trust sales all the time, and it’s a smooth process when you have the right guidance.

If you’re thinking of putting your home in a trust, or if you’ve inherited a property through a trust and aren’t sure what to do next—let’s talk. I’m happy to help answer questions or connect you with great estate planning professionals here in the Central Valley.

📞 Ready to learn more about trust property? I’ve got your back.

Let’s make it simple and stress-free.

Our go to attorneys for Trust and real estate matters are Andrew Smith or his daughter, Grace Johnson, Smith & Johnson Law, https://smithandjohnsonlaw.com 
or, Greg Goering, https://www.personalinjurylodi.com/

– Brian with The Halstead Team

Guiding You Home in Lodi & Beyond