You can think of a will as instructions to a probate judge for how you want your property distributed. A trust is an estate planning tool that handles your property distribution and incapacity planning. If set up correctly, a trust can avoid the probate process and offer the benefits of asset protection for beneficiaries and capital gains tax savings.

Moving your home into a revocable living trust generally does not trigger the due-on-sale clause of your mortgage because you are still retaining ownership and control over the property.

When your beneficiaries receive assets through a trust, they are given a “step up in basis.” This means that if/when they sell the home, they will be responsible for paying the capital gains taxes on the appreciation from when they received the home, rather than from when you originally purchased it.