Lately, I’ve noticed a sharp increase in title files involving the passing of homeowners, property tax reassessments, and even the unfortunate dissolution of marriages. These situations often bring unexpected complications, especially when real estate is involved. Families are left scrambling to navigate legal hurdles they never anticipated.

Just last week, I spoke with a family who had lost a loved one unexpectedly. They believed the home was safely in the trust, only to discover that a crucial step had been missed—the trust transfer deed had been prepared and executed but never recorded. Now, the children may face probate, delays, and potential property tax reassessments at an already difficult time.

This situation highlights a common and costly mistake: assuming a trust automatically includes a home when, in reality, it must be properly funded with a recorded trust transfer deed. Without this step, the property remains in the owner’s name, which can lead to probate and other legal challenges when the owner passes away or needs to make changes.

The Problem: Why a Trust Transfer Deed Is Important

Creating a trust is only the first step. To ensure a home is protected, a trust transfer deed must be recorded, officially moving the property into the trust’s name. Many homeowners don’t realize this or forget to re-record the deed after refinancing. If the deed isn’t in place, the home may have to go through probate after the owner’s passing.

Real-Life Examples of What Can Go Wrong

I’ve seen real families deal with these issues. Here are a few examples:

• The Refinance Mistake: A homeowner refinanced their mortgage, and the bank took the home out of the trust during the loan process. They didn’t realize they needed to put it back in. After they passed, their kids found out the home wasn’t in the trust and had to go to court to fix the mistake.

• The DIY Estate Plan: A couple created their own trust using an online service but never transferred their rental property into it. When one spouse passed, the surviving spouse assumed they had full control over the property—until they learned they had to go through probate first, costing thousands in legal fees.

• The Unexpected Death: A father planned to move his vacation home into his trust but passed away before recording the trust transfer deed. His family tried to sell the home, only to find out it was still in his name. It took months in court to sort it out.

How a Heggstad Petition Can Help

A Heggstad Petition allows a judge to confirm that a property was meant to be in a trust, even if the trust transfer deed was never recorded. If there’s proof—like a trust document listing the property—the court can approve the transfer without requiring full probate.

Why This Matters: Avoiding Probate and Saving Money

If a home isn’t in a trust, it usually has to go through probate. This means months (sometimes years) of court proceedings, legal fees, and frustration for the family. Probate can also lead to higher taxes and disputes among heirs.

By using a Heggstad Petition, families can avoid these issues and make sure the property goes to the right people without unnecessary delays.

How to Prevent These Issues

The easiest way to avoid these problems is to make sure the trust transfer deed is recorded. Homeowners should check their records, especially after refinancing, buying a new home, or making changes to their estate plan.

As a title professional, I always advise clients to double-check that their property is actually in their trust. If you’re not sure, reach out—I can help you review your records so your family doesn’t have to deal with a legal mess later.

If a mistake has already happened, knowing your options is key. A Heggstad Petition can help correct the issue, make sure a loved one’s wishes are followed, and prevent unnecessary stress and legal costs.

This blog post is for informational purposes only and should not be considered legal or financial advice. If you have questions about your specific situation, consult a qualified attorney or estate planning professional.