After your Trust is signed, you must take steps to fund it with your Trust Property.\u00a0 If you do not fund the Trust with your Trust Property, the Trust may not be effective, and your estate may have to go through probate upon your death.<\/p>\n
Transferring real property to a trust requires a deed (most of the time a quit claim deed or Trust Transfer Deed). The deed needs to be executed as required by law in the state where the property is located, with the required witnesses, notary provision, and recording with the appropriate agency. You may need to file a copy of the Trust document, or a summary of the Trust called a Memorandum of Trust or Certificate of Trust. This summary is preferable because it is typically one or two pages and avoids having the details of your Trust in the public record.\u00a0 A Certification of Trust is included in your Islamic Trust-based Estate Plan.<\/p>\n
If your property is subject to a mortgage you may need to obtain the permission of the lender.\u00a0 You should also check your home insurance policy to make sure no additional endorsements or updates are needed after transferring the property to the Trust.<\/p>\n
Caution: <\/strong>A real property transfer normally results in a transfer tax and other fees. Some states exempt the transfer to a living trust, some charge a nominal fee, and others consider it a sale at full market value and assess the full taxes and fees. For a personal residence, some states give a homestead exemption (resulting in lower annual property taxes), and some limit the annual amount of property tax increase. You want to be sure that a transfer won\u2019t incur substantial fees or eliminate such homestead or tax increase protections.\u00a0 Consult with your accountant or financial advisor before transferring your residence to your trust.<\/p>\n Note:<\/strong> Overseas\/foreign real estate cannot be funded into your Islamic Trust as most countries will not permit a foreign trust (an American trust) to hold local property.<\/p>\n","protected":false},"excerpt":{"rendered":" Learn how to fund your trust with real property for Muslim Americans. Islamic estate planning explained.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"banner_title":"Real Property","banner_subtitle":"Funding your Trust: Real Property","footnotes":""},"categories":[387,386],"tags":[391,389,392,41,388,501,571,393,390,570],"class_list":["post-606","post","type-post","status-publish","format-standard","hentry","category-funding-your-trust","category-islamic-estate-planning","tag-family-waqf","tag-funding","tag-funding-your-trust","tag-islamic-estate-plan","tag-islamic-trust","tag-property","tag-real","tag-real-property","tag-trust","tag-your"],"yoast_head":"\n