Comparisons
Quitclaim Deed vs Trust-Funding Deed
Quitclaim and trust-funding deeds both move title but serve different purposes. Confusing them creates defective transfers.
Quitclaim deeds and trust-funding deeds both move title to real estate — but they're used for different purposes and have different legal consequences. Confusing them can result in defective transfers that aren't discovered until years later.
Side-by-side comparison
| Topic | Quitclaim Deed | Trust-Funding Deed (Warranty) |
|---|---|---|
| Warranties of title | None — transfers whatever interest the grantor has | Full — preserves warranty chain from original purchase |
| Common use case | Family transfers, divorce, name changes, removing former spouse from title | Funding a revocable living trust as part of estate planning |
| Risk to grantee | Higher — no recourse against grantor if title defects emerge | Lower — warranties run with the chain |
| Required for trust funding? | Not generally — quitclaim breaks warranty chain | Yes — preserves the chain so future buyer can rely on warranties |
| Documentary stamps in Illinois | Often exempt for trust transfers (no consideration changes hands) | Often exempt for trust transfers (no consideration changes hands) |
| Recording | Required — County Recorder where property is located | Required — County Recorder where property is located |
| Required for divorce/family transfer | Common choice | Possible but unusual |
| DIY risk level | High — deed must be drafted correctly to be effective | High — deed must be drafted to be accepted by trust |
Why this matters for Illinois homeowners
When an Illinois homeowner creates a revocable living trust, the property does not automatically become trust property — the trust must be funded. Funding the trust means executing and recording a deed transferring the property from the homeowner (as grantor) to the trustee of the homeowner's own trust (as grantee). The structure is: Adam Lysinski grants to Adam Lysinski as Trustee of the Adam Lysinski Revocable Living Trust dated [date].
If a quitclaim deed is used for trust funding, the warranty chain is broken. Years later, when the trustee tries to sell the property, the buyer's attorney may flag the quitclaim transfer in the chain of title and refuse to accept warranties from the trust. This can complicate or block the sale. The fix is a corrective deed, which costs more than the original transfer would have cost if done correctly.
The Lysinski & Associates P.C. trust package includes one Illinois warranty deed transferring real estate into the trust as part of the $2,000 starting fee. Multiple Illinois properties or out-of-state real estate add complexity and cost.
Common questions
What's the difference between a quitclaim deed and a trust-funding deed?
A quitclaim deed transfers whatever ownership interest the grantor has in a property — without warranties about the title. A trust-funding deed (typically a warranty deed or a trustee's deed) transfers ownership of real estate from the individual into a revocable living trust as part of an estate plan. Both can move title; they're used for different purposes.
Which deed should I use to transfer my home into my trust?
For most Illinois homeowner trust-funding situations, a warranty deed is appropriate — the deed transfers the property from the homeowner (as grantor) to the trustee of the homeowner's own revocable living trust (as grantee). The warranty deed preserves the chain of title warranties from the original purchase. A quitclaim deed could be used but is generally disfavored for trust-funding because it disrupts the warranty chain.
Why do people use quitclaim deeds at all?
Quitclaim deeds are common for transfers between family members, divorce settlements, name changes, removing a former spouse from title, and similar situations where the parties already trust each other and warranties of title are not at issue. They are also used in commercial transactions where the buyer is conducting independent title insurance and does not require warranties from the seller.
Does a trust-funding deed need to be recorded?
Yes. Like all Illinois real-estate deeds, a trust-funding deed must be recorded with the County Recorder's office in the county where the property is located. Recording fees apply. Until the deed is recorded, the trust does not legally hold title to the property.
Can I transfer property into a trust myself without an attorney?
It is technically possible but generally not advisable for an Illinois primary-residence transfer. The deed must be drafted to satisfy Illinois statutory requirements, the trust language must accept the property, the deed must be properly executed and notarized, and it must be recorded in the correct county with the correct documentary stamps and exemption. Errors create defective transfers that may not be discovered until the trustee tries to sell the property years later. The cost of attorney-drafted deed transfer is included in the Lysinski & Associates trust package.
Trust-funding question?
Adam handles trust-funding deeds personally. The 5-minute triage call is free.
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