Transferring your real estate to a trust is a wise and strategic estate planning action that may provide several benefits, such as asset protection, avoidance of probate, and efficient wealth distribution. With the correct assistance, creating a trust in the state of Nevada may be a simple procedure. This article will take you through how to transfer real estate to a trust in Nevada.
Select the Appropriate Deed Form
To begin, you need a deed form(s). These forms can often be found online or obtained from a local law library that houses books on “real property” with photocopy-ready deed forms. Please visit the resources available in the State, County or City where the property is located for more information.
Complete the Deed Information
Fill in the required details on the deed form, including:
- The current owners’ name(s):
If you are the sole owner or co-own the real estate with someone else and are transferring only your share, include only your name. If you co-own the real estate and are transferring it wholly to a shared trust, enter both your names as trustee(s).
- The new owner’s name:
Fill in your name(s) exactly as how you did in the first paragraph of your trust document, along with the date you signed the trust document in front of a notary public.
- The real estate’s “legal description:”
You have to copy the description the way it appears on the previous deed. If you co-own the real estate and are transferring only your share, specify this along with the legal description.
Notarize and Record the Deed
After completing the deed, sign and date it in front of a notary public for the state where the real estate is located. All current owners transferring their interest in the real estate to the trustee must also sign the deed. Subsequently, record the notarized deed in the county office responsible for local real estate records. For a small fee, a clerk will copy and file the deed, providing you with an original copy stamped with a reference number for easy retrieval. Provide this stamped copy to Nevada Trust Company® so they record the property as an asset of your Trust.
Understand Transfer Taxes
In most cases, you won’t need to pay state or local transfer taxes when transferring real estate to your Trust. Transfer taxes are typically based on the sale price of the real estate, and since no money is changing hands, they do not apply to transfers to your Trust. However, it’s essential to verify this with the county recorder, county tax assessor, or state tax officials before recording your deed.
Notify Insurance Providers
Once you have transferred ownership of the real estate, inform your insurance agent about the change. They will update their records to indicate the trust as the new owner, but this change should not impact your coverage or the policy’s cost.
Consider Other Assets
Apart from real real estate, you may also want to transfer other assets into your trust, such as, financial assets, life insurance policies, LLCs and more. Each type of asset transfer may have specific requirements, so consult an attorney to ensure a smooth process.
What Assets Are Not Suitable for Inclusion in a Trust?
Certain assets are not eligible or recommended for placement in a trust. Individual Retirement Accounts (IRAs), for example, cannot be owned by a trust and must remain in your name. However, you have the option to designate the trust as a primary or secondary beneficiary. On the other hand, trusts are commonly named beneficiaries of life insurance policies, but it’s essential to seek advice from a lawyer or accountant to understand any potential tax implications.
If you acquire or inherit assets after establishing the trust, it is advisable to promptly transfer them to the trust. Whenever possible, make purchases with the trust, ensuring that the assets are automatically placed within its framework plus the funds are traveling through the State of NV with a clear paper trail showing your Trust funded and therefore owns the asset(s). This proactive approach helps streamline the trust management process and ensures all relevant assets are appropriately safeguarded.
