Blog

Adding your home to a revocable living trust is a great way to protect your assets and simplify your estate plan. But did you know there are a few important follow-up steps to make sure everything works as intended? Here’s what you need to know:

Why Take Action?

• Avoid Claim Headaches: If your trust isn’t listed on your homeowner’s insurance, a claim could be denied because the trust (not you) is now the legal owner.
• Prevent Policy or Loan Issues: Insurance companies or mortgage lenders might cancel your policy or even call your loan if you don’t let them know about the trust transfer.
• Keep Your Estate Plan Working: Lining up your documents ensures insurance payouts go straight to your trust and skip probate delays.

What to Do Next

1. Tell Your Mortgage Lender

Let your lender know you’ve transferred your home into a trust. They may want a copy of the trust or a certificate of trust. Be sure to get written confirmation that the transfer is approved and doesn’t trigger the loan’s due-on-sale clause. (Transfers to a revocable trust are usually protected if you’re still a beneficiary and live in the home.)

2. Update Your Homeowner’s Insurance

Call your insurance agent as soon as your home is in the trust. Ask them to add the trust as an “additional insured” or “named insured.” Make sure the trust’s legal name is on the policy and request updated documents.

3. Review Title Insurance

Check that your title insurance still covers the trust. If it doesn’t, ask about adding an endorsement to extend coverage.

Why It Matters

“An insurance adjuster may deny a claim where there’s a mismatch between the property’s legal owner and the named insured on the policy.”

— United Policyholders, April 27, 2025

Missing these steps could mean denied insurance claims, delays in probate, or even issues with your mortgage.

Need Help?

We’re here for you! If you have questions or want help making these updates, just reach out to us at Artisan Financial Planning.

^{This article is for informational purposes only and should not be considered legal or tax advice. Please consult an attorney or tax professional for advice about your specific situation.}

References:

• United Policyholders: How to make sure a home held in a trust is properly insured (April 27, 2025)
• Mercer Advisors: Navigating Real Estate Transfers to Trusts (May 21, 2025)
• AmeriEstate: Why and How to Add Your Living Trust to Your Home Insurance Policy (2025)
• SSB LLC: Five Things to Know When Transferring Your Home to a Revocable Trust (March 5, 2025)