What happens to the property and casualty insurance when property is put into a living trust?  Well, nothing, provided…

As I explain in more detail at http://www.legalees.com/insurance-when-property-deeded-to-living-revocable-trust/, the trust must be what is called a “grantor trust.”  This kind of trust is revocable.  The Grantor (person setting up the trust), the Trustee (the person managing the trust), and the Beneficiary (the person who gets the benefits from the assets held in the trust) should ALL be the same person – you.

If the trust is a grantor trust, the insurance shouldn’t have any beef with you putting property into the trust.  For basically all legal purposes, the trust is still you.  The insurance company has agreed to insure your specific property, and you will receive the benefit of the insurance should it ever pay a claim.

Just to be sure everything is ok, give your insurance agent a heads up. But you should also know that putting property into a living trust is totally different than putting property into a company, such as a family limited partnership, LLC or corporation.  (See http://www.llcwizard.com/effect-on-property-and-casualty-insurance-when-property-is-deeded-to-an-llc-or-corporation for more information on the effects of putting property into a company.)