As you've read, this is outside the scope of Realtors and discussing with an attorney/tax advisor/lender/escrow agent is recommended. With that said, here are some possible considerations you may want to explore with your legal/tax/lender/escrow professionals:
1) If you are getting a loan when you purchase, most banks will not allow you to purchase in a trust as they require a person (not an entity) to hold responsible for the loan. Some folks who desire to put their home in a trust will file a quit claim deed after closing to transfer Title to their Trust.
2) If your home is in a Trust, it may provide a faster way to transfer rights of ownership where you decide who gets your ownership rights. Possibly avoiding probate and any laws which would default dictate who would get the rights upon your death.
3) If your home is in a trust, it may provide some protection if you are sued personally.
I hope you find this helpful.
Assets in a trust are shielded by legal liability. If you as an individual have tax issues, legal issues, spousal issues, the trust keeps these issues at arms length (as long as the beneficiary has no control of the trust).
Here is an example: A husband and wife have a disabled child, the child will never be able to fend for themself. Parents create a trust with the child as the beneficiary. The parents transfer assets to the trust (including real estate) to provide for the disabled child when the parents die or are incapacited. A trustee may be another family member, a clergyman a lawyer for example.
For a regular individual to put a home in trust that they plan to live in will achieve the following:
limited liability exposure of the real estate from actions of the beneficiary
the property will not be held up in probate as it won't be part of the beneficiary's estate
the trustee can pass the property either within the trust or outside of the trust to individuals and/or entities.
For investors you can buy real estate in an IRA. You can sell at gains and the tax will be deferred. Wealth accumulation tax deferred is the main goal here.
Of course, for your specific needs seek out the counsel of an estate/trust attorney.
The answer lies in tax, legal, estate area's etc that are not in the scope of our real estate licenses. We know and understand the real estate component, trusts are not real estate. Trusts may sometimes be used in the course of real estate but are not central to the process. Our expertise lies in the property, location, values, contracts etc., areas that I would guess most trust attorneys and tax consultants wouldn't claim to be experts in either.
Please, I'm actually trying to help you! I really don't think this is the best forum for you to find this answer. I suspect other sites may exist that are targeted towards legal and or tax advice that might answer this question better for you.
Thanks for the question and the answers!
Just lay some truth on me: I can handle it.
Why do some people keep houses out of their names and put them in a trust while living in them?
You should contact an Attorney for this. However, that said, if your property is in a Trust when you die, it will not have to go through Probate. (That is one advantage).