
What Happens to a Home in a Trust After the Owner Dies?

Understanding Property, Beneficiaries, and Trustees
“What happens to a house that’s in a trust after the owner passes away?” It depends on how the trust is structured, but trusts are designed to simplify the transfer of assets and help avoid the probate process. If a home is properly placed in a trust, the transition after death can be relatively smooth for both the property and the people involved.
1. The Role of the Trust
When someone places their home in a revocable living trust, they maintain control of the property while they’re alive. They can live in the house, refinance it, sell it, or even change the terms of the trust at any time. After their death, the trust becomes irrevocable, meaning no one can change it. At this point, the trust can dictate what happens next.
2. What Happens to the Property?
Upon the death of the trust creator, or the grantor, the house does not go through probate, which is a time-consuming and often expensive court process. Instead, the person named in the trust to take over after the grantor’s death steps in to manage the trust’s assets.
The successor trustee has the legal authority to:
- Secure the property
- Handle outstanding bills related to the home (e.g., mortgage, property taxes, utilities)
- Distribute the home to the beneficiaries, or
- Sell the home and distribute the proceeds, depending on the trust’s instructions.

3. What Happens to the Beneficiaries?
The trust document will name the beneficiaries, the individuals or entities entitled to receive the property or its value. If the trust directs the home to be given directly to a specific person (e.g., a child or spouse), the trustee will transfer ownership to that person.
If the trust states the home should be sold and the money split among several beneficiaries, the trustee is responsible for overseeing the sale and ensuring each beneficiary receives their share.
4. Duties of the Trustee
The trustee plays a crucial role in carrying out the terms of the trust. Their legal duties can include:
- Acting in the best interests of the trust’s wishes
- Keeping accurate records
- Communicating regularly with the beneficiaries
- Following the trust’s instructions precisely
- In California, trustees also have certain fiduciary responsibilities under the Probate Code, which require them to act with care, loyalty, and impartiality.
5. Why Proper Planning Matters
Having a home in a trust can significantly reduce the burden on loved ones after death. It can streamline the transfer process, avoid probate, and offer privacy that a public court proceeding may not.
At Cannon Legal Firm, we specialize in estate planning strategies that can protect your property and give your family peace of mind. If you’re unsure whether your home is properly titled in your trust or have questions about serving as a trustee, we’re here to help.
Contact us today to schedule a free, no-obligation consultation and ensure your legacy is in good hands.