Can you add a spouse to a Deed outside of a Trust?

We just ran into a situation where a married couple purchased a home, vested it as the husband’s property, sole and separate, and then put the property into the husband’s trust.

Three years later the husband adds his wife to the property by filling out a deed and having it recorded at the County Recorder’s office.

Who owns the property?

That’s a great question as there is an argument for either side. Is the property still in the Trust, giving ownership to the husband? Or, is the property now jointly owned by husband and wife? 

The answer, because of the confusion with the chain of title, this property is currently uninsurable. The wife needs to Quitclaim the house back to the Trust or the husband must take the house out of the Trust before this property can be insured.

So, even though the County will allow you to fill out a deed and record it, do not record any deed while a property is in a trust. You’re only making the property uninsurable.

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