Creating a solid Minnesota estate planning strategy is one of the best ways to protect your home, assets, and loved ones. Documents like wills, powers of attorney, health care directives, and revocable living trusts all play an important role. However, many homeowners are surprised to learn that signing estate planning documents is only the first step.
If your estate plan includes a revocable trust (also called a living trust), you must take an additional and critical step: updating your property deed. Without this step, your estate plan may not work the way you intended.
As a Monticello estate planning attorney, we help homeowners throughout Wright County ensure their trusts are properly funded so their real estate is fully protected.
What Does “Funding a Trust” Mean in Minnesota Estate Planning?
A revocable living trust is a legal entity that can own property, manage assets during incapacity, and distribute assets after death—often without probate. But simply creating the trust document does not transfer ownership of your home or other real estate into the trust.
To fund your trust, you must:
Change the ownership of your property
Record a new deed transferring the property from your individual name to your trust
If this step is skipped, your real estate may still be subject to Minnesota probate, defeating one of the primary benefits of having a living trust.
Why Updating Your Property Deed Is So Important
When your home or other real estate remains titled in your individual name, your trust has no legal authority over that property. As a result:
The property may still go through probate
Your successor trustee may not have authority to manage or sell the property
Your estate plan may require court involvement
Properly updating your property deed ensures your trust can function as intended and keeps your estate plan efficient and private.
What Type of Deed Is Used to Transfer Property Into a Trust?
In most Minnesota estate planning cases, real estate is transferred into a trust using either:
a Quitclaim Deed, or
a Warranty Deed
A quitclaim deed is commonly used when transferring property from yourself as an individual to yourself as trustee of your revocable living trust. This is typically a straightforward process, but accuracy is critical.
A Monticello estate planning attorney can ensure the deed:
Is drafted correctly
Properly names the trust
Complies with Minnesota recording requirements
Mistakes in deed preparation can cause serious legal issues down the road.
How the Deed Transfer Process Works in Minnesota
Transferring real estate into a trust generally involves several steps:
Preparing a new deed that transfers ownership from you individually to your trust
Signing and notarizing the deed
Recording the deed with the county recorder where the property is located
Once recorded, the deed creates a public record of the ownership change and legally completes the trust funding process.
Many homeowners worry that transferring their home into a trust will:
Increase property taxes
Trigger a mortgage due-on-sale clause
In most cases, transferring property into your own revocable trust does not cause a reassessment or violate mortgage terms. Still, each situation is unique, which is why it’s important to review the transfer with your estate planning attorney.
Homeowners Insurance and Property Tax Considerations
After updating your deed:
Notify your homeowners insurance company so the policy reflects trust ownership
Confirm any homestead or property tax exemptions remain in place
Failing to update these items can cause unnecessary complications or coverage issues.
Don’t Forget About Other Real Estate You Own
Your primary residence is not the only property that may need a deed update. As part of comprehensive Minnesota estate planning, you should also review:
Vacation homes
Rental properties
Investment real estate
Vacant land
Any property not titled in your trust may still require probate.
How Deeds Fit Into a Complete Minnesota Estate Plan
A well-designed estate plan typically includes:
A will
A durable power of attorney
A health care directive
A revocable living trust
Properly updated property deeds
Each document works together. Missing just one piece—like failing to update a deed—can undermine the entire plan.
Work With a Monticello Estate Planning Attorney
Creating an estate plan without properly funding your trust is like installing a security system but never turning it on. The documents exist, but they can’t fully protect you or your family.
If you’ve recently created a revocable trust, or if you’re unsure whether your property deeds were properly updated, we can help.
📍 Serving Monticello, Wright County, and surrounding Minnesota communities
📞 Call 763-244-2949 to schedule a consultation with a Monticello estate planning attorney and make sure your estate plan works exactly as you intended.
