Selling Trust Property
Selling Trust Property In California
A trust is similar to a will, in that it’s a document that lays out where assets and properties will go after the death of an individual. If you’re the assigned beneficiary of real estate after a loved one passes away, you’ll need to work closely with the trustee, the person in charge of the trust, to sell the home. This cooperation between beneficiary and trustee is critical for completing the sale of the property or properties.
Overall, selling property that is held in a trust isn’t very different from selling property traditionally. Depending on which way you decide to navigate the sales process, the results may be different.
The Process Of Selling
If you decide that selling your inherited real estate is the best option for you, the first thing you must consider is hiring a professional, like Mike Millea, to help you navigate the complexities of this process. He’ll help explain your options to you, so that you can make an educated decision. Generally, there are two ways proceed with selling trust property. One method is that the trustee can sell the home outright, and then the proceeds will become apart of the trust. The other way to sell is to have the trustee transfer ownership of the property to the beneficiary, so they can proceed to sell the property themselves. You’ll find the accompanying steps below:
Selling With The Trustee
- Review the trust documents to ensure that the trustee has the right to sell the property, which should be included as a provision in the paperwork. If there’s no clear indication that the trustee has that right, most courts allow the sale to occur, unless the documents explicitly state they cannot.
- Then, the trustee and beneficiary can hire a real estate agent to proceed with the sales process.
- Proof must be provided to the trust company that the trust is valid and the trustee has the proper rights to sell the home.The title company might also require the following paperwork: Certification of Trust (signed by a trust attorney), a death certificate of the trust creator, and a tax ID number.
- Finally, the sale can close when an agreement is reached between the trustee, beneficiary, and buyer. The earnings from the sale become assets of the trust, which can be given to the beneficiary or kept in an account for safekeeping.
Selling Without The Trustee
- Review the trust documents, to ensure that there’s nothing preventing the transfer of the real estate title from the trustee to the beneficiary. If there’s no explicit statement in the documents, then the transfer can occur.
- It’s important to note that the trustee has the power to allow or disallow the transfer, depending on what he or she feels is right. If the trustee approves, they must complete a deed form and file it with a local property office so it becomes official.
- Then, a real estate agent is hired and the sale proceeds like above.
Need Guidance? The Team At Mike Millea Probate Real Estate Can Help!
The process of selling trust property is extremely complicated, and it’s necessary to have a professional guide you along the way. Fortunately, Mike Millea is an experienced Los Angeles trust real estate broker, as well as a state attorney for 25 years. He is California’s most experienced trust agent, and can counsel his clients with an unmatched expertise. Contact our El Segundo office at (310) 939-9356 for answers to all your trust, probate, or conservatorship questions, and we’d be happy to assist you. We look forward to hearing from you soon.