What Happens To Real Estate When It Is Put Into A Revocable Living Trust?
What happens to real estate when it is put into a revocable living trust? Min Austria Assistant at Ascent Law LLC Real estate entails an additional layer of complexity that doesn't exist for other assets. That's because real estate is considered a "real property interest" in the trust and may have different tax implications than other assets held in the trust. When a person owns real estate outright and then creates a revocable living trust, that person still remains the owner of the property and will continue to be subject to certain obligations regarding the property. For example, if you own a rental property, you are still responsible for being a good landlord even though you are no longer the legal titleholder. This is because you signed legal agreements with your tenants, who most likely have notice of your ownership of the property and can enforce their end of the bargain against you in court if need be. You also may want to address whether or not your trustee h...