When to Buy a Home in Your Name, in a Trust, or in an LLC

Buying a home is one of the biggest financial decisions you’ll ever make. But once your offer is accepted, there’s another important decision you’ll need to make before closing: how to take title.

Should you purchase the home in your personal name? Should you form an LLC? Or should you hold it in a trust? The right answer depends on your goals—protection, privacy, tax planning, or estate planning.

Here’s a breakdown of the most common title-holding options in California and when each might make the most sense.

Taking Title in Your Own Name (As an Individual)

What It Means:

You’re listed as the sole owner of the property on the deed, or jointly with someone else.

When It Makes Sense:

• You’re buying a primary residence
• You’re using conventional financing
• You don’t need complex asset protection or estate planning yet

Pros:

• Simpler to finance and insure
• Fewer upfront legal costs
• Full personal control of the property

Cons:

• Limited liability protection—your home is part of your personal assets
• Must go through probate upon death if not held in a trust
• Less privacy—your name is part of the public record

Holding Title in a Revocable Living Trust

What It Means:

You still own the property, but it's held in a trust that designates how it should be managed if you become incapacitated or pass away.

When It Makes Sense:

• You want to avoid probate
• You’re planning your estate
• You want to maintain control while protecting your heirs from legal red tape

Pros:

• Avoids probate court (saves time and costs for your heirs)
• Allows for smooth transition of ownership if you pass away or become incapacitated
• Still allows you to refinance or sell as the trustee

Cons:

• Some lenders require the property to be taken out of trust for financing (though this is usually temporary)
• Small legal fees to set up and maintain a trust
• Does not protect against lawsuits or liability

Pro Tip: Most California homeowners with significant assets or family dependents are advised to place property in a revocable living trust.

Holding Title in an LLC

What It Means:

The property is owned by a limited liability company, and you are a member of that LLC.

When It Makes Sense:

• You’re buying investment or rental property
• You want liability protection
• You’re purchasing with partners or managing multiple properties

Pros:

• Shields your personal assets from lawsuits related to the property
• Offers potential tax benefits and expense deductions
• Helps with partnership structuring and ownership shares

Cons:

• Most lenders won’t offer a residential loan to an LLC—you’ll need to buy with cash or get a commercial loan (often at higher rates)
• Franchise tax and maintenance costs in California
• Can trigger property tax reassessment if not structured carefully

Important: Do not purchase your personal home in an LLC unless advised by a real estate attorney or CPA—it can create complications with lending, insurance, and capital gains exemptions.

Other Title-Holding Options

In addition to the ownership entity, you’ll also need to decide how you hold title with others, if applicable:

• Joint Tenancy – Equal shares, right of survivorship
• Tenants in Common – Unequal shares allowed, no right of survivorship
• Community Property (for spouses) – Equal ownership, may offer stepped-up tax basis
• Each has legal and tax consequences—be sure to consult with your agent, attorney, or CPA.

Final Thoughts

The way you hold title isn’t just a legal technicality—it can affect your taxes, liability, privacy, and inheritance strategy. For most primary homebuyers, buying in a trust is a smart long-term move. For investors, LLCs offer structure and protection. For others, holding title in your own name might be the simplest option.

At the Stephanie Younger Group, we work closely with trusted estate attorneys, tax professionals, and lenders to help our clients make smart, informed title decisions—based on their goals today and tomorrow.

Disclaimer: This article is for general information only and is not legal or tax advice. Please consult with a qualified attorney or tax advisor for guidance on your specific situation.