Does my property tax change if I put my house in a trust?

As with most legal answers, it depends.

First, property tax is a county assessed tax that gets changed when there is a change in ownership. If you are the sole owner of the house and you originally purchased the house, then you can put your house in your living trust without having a change in your property tax bill. You still own the house; it’s just in your living trust.

If you and your spouse are the sole owners, you can also put your house in your trust without a change in the property tax bill. In fact, if you purchased the house solo and then add your spouse to your deed, you do not incur a property tax change either. If you then move the house from being owned by you and spouse to the trust, that also is not the cause for a property tax reassessment.

However, if you were added to a deed (not with a spouse) or otherwise have ownership of a property that is not involving solely yourself and a spouse, there may be a property tax reassessment.

For example, if parents add a child to the deed on a house that is their primary residence and the child does not live in the house, there is a property tax reassessment for the percentage ownership that the child has acquired. If the parents then put their share of the house into their trust, there is no reassessment for that trust transfer.

There are many circumstances where the property tax might get reassessed if you add someone to a deed or otherwise change ownership. It is always best to check with an attorney before you change how you or a loved one owns a home to ensure you don’t get hit with an unexpected property tax bill. Contact me today for a consultation.