How to Put Your Vacation Home in a Trust

**This article is for educational purposes only and does not constitute legal advice. Please schedule a free consultation with one of our qualified attorneys for advice specific to your situation.

For many people in California, a vacation home isn’t just a property — it’s a special place filled with memories. Maybe it’s where you spent weekends with your family, watched your kids grow up, or hosted big family get-togethers. Whether it’s a cabin in the mountains or a beach house by the ocean, your second home is important, and it deserves to be protected in your estate plan.

If you haven’t done it yet, putting your vacation home into a trust is a smart step. It can save your family time, money, and avoid a lot of headaches. Here’s what you should know.

Why Put a Vacation Home in a Trust?

A trust is a legal tool that holds your property for you while you’re alive, and then passes it to your chosen people after you’re gone. When your vacation home is inside a trust, it skips the long and often expensive probate process in California — which can take months or even years.

But there’s more. A trust lets you decide how your home should be used in the future. Do you want your kids to keep it in the family? Should it be sold if they’re not interested? Can it be rented out to help with costs? You get to set these rules in the trust.

What Kind of Trust Should You Use?

Most people choose a revocable living trust. It’s flexible — you can change or cancel it anytime while you’re alive. You stay in charge of your home and can update things as your needs change.

If you want stronger protection from creditors or are thinking about tax savings, an irrevocable trust might work better. But these are more strict and harder to change, so they need careful planning.

A good estate lawyer can help you figure out which trust fits your situation best.

How to Put Your Vacation Home in a Trust

  1. Create or Update Your Trust
    If you already have a trust, your lawyer can add your vacation home to it. If not, you can set one up that covers your second home and other assets.

  2. Change the Property’s Title
    You’ll need to transfer the legal ownership of the home from your name to the trust’s name. This usually means creating and recording a new deed, and your lawyer will handle this.

  3. Tell Your Insurance Company
    Once the home is in the trust, update your homeowner’s insurance and liability coverage. You want to make sure you’re fully protected.

  4. Set Rules for Use and Care
    If you have several heirs, it’s smart to spell out how the home should be used. Can it be rented on Airbnb? Will family members take turns using it during holidays? Who pays for repairs? These details can prevent arguments later.

  5. Put Money in the Trust
    You might also want to put some money into the trust to pay for property taxes, insurance, and maintenance. This way, your family won’t be stuck with unexpected bills.

What If No One Wants the Home?

Sometimes heirs don’t want the vacation home. Maybe they live far away or don’t want the hassle. Your trust can include a backup plan, like selling the property and dividing the money equally. Or, one family member could buy out the others at fair market value.

Don’t Forget About Taxes

While a trust helps avoid probate, it doesn’t automatically get rid of estate or property taxes. California’s property tax rules changed after Proposition 19, so it’s important to talk with your estate planner about how taxes might affect your home.

If you rent the home out, there are also tax rules for the rental income that the trust should handle.

Final Thoughts

Your vacation home is probably one of your most personal and valuable things. Whether it’s been in the family a long time or is a newer purchase, using a trust is one of the best ways to protect it and make sure your wishes are followed.

That said, setting up a trust can get complicated. From choosing the right trust to transferring the deed and dealing with California’s tax laws, there’s a lot to think about. That’s why working with a skilled estate planning attorney is a good idea — someone who knows the law and understands your goals.

At Yu and Yu Law, we’ve helped many California families protect their vacation homes and pass them on smoothly. We’ll guide you through every step and make sure the plan fits your needs. Schedule a free consultation here.

Creating a trust isn’t just about saving time or money — it’s about making sure your family can enjoy your vacation home without confusion or fights. When the time comes, they’ll be thankful you planned ahead.