Most Homeowners Get This Wrong When Putting a Home in a Trust | Repair The Roof Podcast

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Home insurance seems simple—until a trust enters the picture. Ted Gudorf walks through real homeowner stories where insurance claims fell apart after disasters, revealing how small oversights in policies and paperwork can lead to big problems when it matters most.

The Hidden Insurance Trap That Could Leave Your Trust-Owned Home Unprotected

Why a simple paperwork mismatch could cost homeowners everything—and the one update that protects your largest asset.

What if your homeowner’s insurance didn’t actually cover your home?

Not because you forgot to pay the premium.
Not because your policy expired.

But simply because your house was placed in a trust.

It sounds impossible. Yet after recent disasters—including devastating wildfires—some families discovered a shocking reality when they filed insurance claims for destroyed homes: their coverage was denied.

The reason? Their home was titled in a trust, but their insurance policy was not updated to reflect that change.

That small administrative oversight created a dangerous gap between the deed and the insurance policy. In some cases, it meant families had no coverage at all.

And this isn’t just a problem for homeowners in one region. Fires, storms, floods, and other disasters occur across the country every year.

If your home is in a trust—or if you plan to place it there—you need to understand how this issue works and how to avoid it.

Because one simple update could protect the most valuable asset you own.

Why So Many Homeowners Put Their House in a Trust

Before discussing the insurance issue, it helps to understand why placing a home into a trust is such a powerful estate planning strategy.

For many families, a revocable living trust offers advantages that a simple will cannot provide.

These advantages often include:

  • Avoiding probate court

  • Planning for potential incapacity

  • Protecting beneficiaries in the future

Each of these benefits plays an important role in preserving both wealth and peace of mind.

But the real value of a trust becomes clearer when you understand what it helps your family avoid.

The Probate Problem Most Families Want to Avoid

When someone passes away with only a will, their estate typically must go through probate.

Probate is the court-supervised process used to transfer property after death.

While the system exists for legitimate reasons, it often creates complications families don’t expect.

Probate can be:

  • Slow

  • Expensive

  • Public

  • Stressful for surviving family members

In many states, probate can take one to two years to complete.

During that time, heirs may have limited control over assets. Court filings become public records. Legal and administrative costs may accumulate.

A properly funded living trust changes that process entirely.

Instead of transferring property through court proceedings, the trust allows assets—such as a home—to pass directly to beneficiaries according to the terms you established.

That means the transfer can occur privately, efficiently, and without the delays associated with probate court.

For many families, that difference alone makes a trust an essential planning tool.

Trusts Also Help During Life, Not Just After Death

Estate planning is often associated with what happens after someone passes away.

But a well-designed trust also protects you during your lifetime.

Consider what happens if someone becomes mentally incapacitated due to illness, injury, or cognitive decline.

Without a trust in place, family members may be forced to seek legal guardianship through the court system in order to manage finances and property.

Guardianship proceedings can be:

  • Time-consuming

  • Expensive

  • Emotionally difficult for families

This process is sometimes called “living probate.”

A revocable living trust provides a smoother alternative.

If the trust creator becomes incapacitated, a successor trustee can step in immediately to manage trust assets—including the home—without needing court approval.

Bills can be paid. Property can be maintained. Financial decisions can continue uninterrupted.

That flexibility is one reason many estate planning professionals consider trusts a cornerstone of effective planning.

The Overlooked Layer: Protecting the Next Generation

Another often misunderstood benefit of trust planning involves protecting beneficiaries.

Many people assume that once assets pass through a trust, those assets remain protected forever.

In reality, that depends on how the trust is structured.

A basic revocable living trust typically distributes assets directly to heirs once the original owners pass away.

Once those assets are distributed, they may be exposed to risks such as:

  • Divorce

  • Lawsuits

  • Creditor claims

  • Financial mismanagement

To create lasting protection, many estate plans include specialized sub-trusts designed to hold inherited assets for beneficiaries.

These structures—often referred to as inheritance protection trusts or beneficiary asset protection trusts—can help shield assets while still allowing beneficiaries to benefit from them.

When structured properly, these trusts may help ensure family wealth remains protected for future generations.

But even the most carefully designed trust can fail to work properly if a critical detail is overlooked.

And that brings us to the insurance issue many homeowners never see coming.

The Insurance Gap That Can Catch Homeowners Off Guard

When you transfer your home into a trust, something important changes from a legal perspective.

The ownership of the property changes.

You no longer technically own the home as an individual.

Instead, the trust becomes the legal owner.

For example, the deed may change from:

John and Mary Smith

to something like:

The Smith Family Trust dated January 15, 2025.

That distinction may seem minor.

But to an insurance company, it matters a great deal.

Insurance policies are written to cover specific named individuals or entities.

If the name on the insurance policy does not match the legal owner listed on the deed, a coverage issue may arise.

In some situations, that mismatch has resulted in claim disputes—or even claim denials.

This isn’t simply a theoretical scenario.

Recent disasters have brought attention to cases where homeowners discovered the problem only after filing major insurance claims.

By that point, the damage had already been done.

Why This Issue Is Getting More Attention Now

Several factors have contributed to increased awareness of this problem.

Natural disasters in recent years have triggered large numbers of insurance claims. During those claims processes, insurers carefully review ownership records.

When discrepancies appear between the property owner and the policyholder, complications can arise.

At the same time, more families are turning to trusts as part of their estate planning strategy.

That means more homes are being retitled into trusts.

Without careful coordination between estate planning and insurance coverage, gaps can develop.

Most homeowners never realize the issue exists.

Until a claim forces everyone to examine the paperwork.

The Simple Update That Helps Protect Your Home

The good news is that this problem is usually easy to fix.

In many cases, it requires only a short conversation with your insurance provider.

The key step is ensuring that your trust is properly recognized within the insurance policy.

This often involves asking your insurance company to list the trust as either:

  • A named insured

  • An additional insured

  • Or an additional interest, depending on the insurer’s requirements

Once the trust is properly listed, the policy can reflect the correct ownership structure.

That alignment helps ensure the insurance company acknowledges the trust as the property owner.

Just as importantly, it helps eliminate confusion if a claim ever needs to be filed.

The Importance of Written Confirmation

When making this change, documentation matters.

Verbal assurances are helpful, but written confirmation provides clarity.

Homeowners should request written documentation from the insurance company confirming that the trust is properly recognized on the policy.

This documentation can then be stored alongside estate planning documents.

That way, if questions ever arise, the paperwork clearly shows that the policy and the deed align.

Many estate planning professionals also recommend reviewing insurance policies annually to confirm that coverage remains accurate.

Small administrative updates can make a meaningful difference when it comes to protecting valuable assets.

Estate Planning Requires Ongoing Maintenance

One of the most common misconceptions about estate planning is that it’s a one-time event.

In reality, effective estate planning requires periodic updates.

Assets change. Laws evolve. Family circumstances shift.

Even small administrative steps—such as ensuring insurance policies match trust ownership—play an important role in keeping the plan effective.

Think of your trust as a protective container.

It can only safeguard the assets that are properly placed inside it.

And it works best when every piece of the plan—from titles to beneficiary designations to insurance coverage—functions together.

The One Step Every Homeowner Should Take Today

If your home is currently titled in a trust, consider taking a few minutes to confirm that your insurance policy reflects that ownership.

A quick review today could help prevent costly complications in the future.

The step itself is simple:

Contact your insurance provider and ask whether your trust is properly listed on the homeowner’s policy.

If it isn’t, request the update and obtain written confirmation.

It’s a small administrative task.

But it can play a critical role in protecting your home, your family, and your long-term planning strategy.

One Overlooked Detail Can Undo an Entire Estate Plan

The truth is that many estate planning problems don’t arise from major mistakes.

They come from small details that were never revisited.

Insurance policies that weren’t updated.

Accounts that were never retitled.

Beneficiary forms that were never reviewed.

Individually, each issue may seem minor.

But together, they can create unexpected complications for families.

That’s why regular reviews—and attention to detail—remain essential parts of a well-structured estate plan.

Conclusion

Placing your home into a trust is often one of the smartest estate planning decisions you can make.

It can help your family avoid probate, simplify disability planning, and create opportunities for long-term asset protection.

But even strong planning strategies require careful follow-through.

When a home is transferred into a trust, the ownership structure changes—and insurance coverage should reflect that change.

Ensuring your trust is properly listed on your homeowner’s policy is a small step that helps close a potentially serious gap.

And when it comes to protecting your largest asset, small steps can make a very big difference.

Because in estate planning, details matter.

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Ted (00:00.088)

What if your home insurance didn’t cover your house simply because it was titled in a trust? It sounds impossible, but some families are facing this possibility right now. And it’s a costly mistake you can avoid with one simple update. After the California wildfire, some homeowners filed claims for total losses only to be told they weren’t covered, all because their homes were in trust. But the insurance was not.

That small paperwork oversight cost them everything. And this just isn’t a California problem. Storms, floods, and fires don’t care where you live. The truth is, putting your home in a trust is one of the smartest estate planning moves you can make. But if you skip one critical insurance step, you could be putting your largest asset at risk. I’m estate planning attorney Ted Goodarff, and I’ve helped hundreds of families protect their homes.

and assets through proper trust planning. In this video, I’ll explain exactly what’s happening with this insurance issue, why you’re hearing about it now, and the simple fix that keeps your home fully protected. Before we get into the insurance trap, let’s take a minute to understand why putting your home in a trust is so powerful in the first place. Remember, a revocable living trust offers advantages that a simple will simply cannot match. First,

A trust avoids probate. Probate is the court’s supervised process of transferring property after someone passes away. If all you have is a will, probate is guaranteed, and it is slow, public, and expensive. In Ohio and many other states, it often takes one to two years and can cost thousands in court fees, attorney fees, and creditor claims. With a trust,

your home passes directly to your beneficiaries without ever going through probate court. That means your family avoids unnecessary delays, headaches, and expenses, and the transfer is completely private. In Ohio, it also means unsecured creditors cannot file any claims against your home. This can save your heirs even more if you die with unpaid credit card bills, medical bills,

Ted (02:24.064)

or other unsecured debts. Second, a trust also provides disability planning. Estate planning isn’t only about what happens when you die, it’s also about protecting you if you become mentally incapacitated. With just a will, your family would have to go through a guardianship to manage your property. This is sometimes called a living probate. It’s stressful, expensive, and time consuming.

But with a revocable living trust, if you become mentally incapacitated, your successor trustee can immediately step in and manage your home, pay your bills, handle maintenance, and protect your assets without ever needing court approval. That smooth transition can save your family from years of frustration and conflict. Third, a trust can protect your beneficiaries, but only if it’s structured correctly.

This is where so many people misunderstand how trusts work. When your home eventually passes to your children or heirs, you want to make sure it isn’t lost to your children’s divorces, lawsuits, or other creditors. But a standard revocable living trust doesn’t automatically provide that protection once you’re gone. To achieve real asset protection for your children, your trust needs to include

the right kind of sub-trusts, sometimes called inheritance protection trusts or beneficiary asset protection trusts or dynasty trusts. With this set up, when your children inherit, their share stays in trust for their benefit. That means it cannot be taken away in a divorce, seized in a lawsuit, or wiped out by creditors, and it is not countable by Medicaid. This is a critical distinction.

The right kind of sub-trust is what provides lasting protection for your family, not just a basic revocable living trust. Now, let’s talk about where families are getting caught off guard. Insurance coverage. When you put your home in a trust, something important happens legally. The owner of the home changes. You no longer own the home individually, your trust does. For example, instead of

Ted (04:50.828)

John and Mary Smith, the deed might now read the Smith Family Trust dated January 15, 2025. Insurance companies write policies to cover specific people or entities. If the name on your deed doesn’t match the name on your policy, the insurer can deny coverage, not because you did anything wrong, but because the paperwork doesn’t line up.

isn’t a theoretical risk. It’s happening right now. After the California wildfires, families who thought they were covered discovered that their claims were denied because their homes were titled in trust, but their insurance policies weren’t updated to reflect it. The good news is the fix is quick, simple, and often free. First, call your insurance agent and tell them your home is in a trust. Ask them directly.

if your policy accounts for that. Don’t assume it because it usually doesn’t. Next, request that your trust be added, either as the named insured or as an additional insured. This makes sure the insurance company recognizes the trust as the owner and covers it under the policy. Then get confirmation in writing. Don’t settle for we’ve taken care of it. Ask for written documentation.

that proves the trust is covered. Finally, store that confirmation with your estate planning documents and review it every year when your policy renews. To see how serious this is, imagine a family in Ohio with a $500,000 home. They set up their trust, transferred the deed property, and carried homeowners insurance. Then a tornado hits and the home is completely destroyed. When they filed their claim,

The insurance company responds with a letter that says the policyholder name doesn’t match the deed. Even a short delay in that situation can be devastating when you’re trying to rebuild your home and your life. And in the worst cases, the claim is denied entirely. This isn’t just paperwork. It’s about protecting your family’s security and future. Just like a car needs oil changes, your estate plan needs maintenance. Keeping your trust

Ted (07:15.18)

and your insurance in sync is one of those small but critical maintenance steps that makes all the difference. And remember, funding your trust properly goes beyond your home. You need to transfer bank accounts, brokerage accounts, and other assets as well. Think of your trust like a safe. It only protects what you put inside of it. Anything left outside may still face probate.

If your home is already in a trust, take action now. Call your insurance agent. And your trust needs to be added as an additional insured. Get it in writing and review it regularly. This one small update could save your family hundreds of thousands of dollars if a disaster strikes. The golden rule of estate planning is simple. Details matter. Having trust is excellent, but it only works if you take all the steps to make it effective.

By ensuring your insurance policy properly lists your trust, you close a dangerous gap and gain true peace of mind. So there it is, the critical step to protect your home and your trust. A small fix that prevents massive loss and heartbreak. But here’s the thing, your home isn’t the only asset that can cause trouble. Many families think their estate plan is bulletproof until an overlooked beneficiary designation blows it all up.

In our next video, Don’t Let Beneficiary Designations Ruin Your Estate Plan, we’ll uncover how a single outdated form can override your trust or will, and how to fix it before it’s too late.

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