Can You Sell a House that Is in a Trust?
Posted by Techyscouts | Posted on 04/07/2022
Putting property in a trust can come with several advantages including tax benefits, security, and assurance that your beneficiaries will inherit the property but what if you want to sell a house that is in a trust? If you’re wondering what your options are when it comes to selling a house in a trust, you’ve come to the right place; Mike Millea is a Los Angeles conservatorship real estate agent with a deep knowledge of local real estate law and a robust network of connections in the greater LA area. Find out below what you can do with a house in a trust and how to take steps towards having an owner-occupied property in Torrance, South Bay, or LA County.
Selling A House In A Revocable Trust
If you put your house in a revocable trust and have decided that you want to sell the property, your options for selling the house are straightforward. You can either:
- Sell the house as the trustee while the proceeds remain in the trust
- Or you can change the title of the property and sell the house under your name
Depending on your reasons for selling the house, each option has different benefits. Selling the house as the trustee allows you to avoid capital gains taxes but also means that the sale’s proceeds will remain effectively in the possession of the beneficiary. Alternatively, changing the title allows you to retain the proceeds, but forces you to forfeit the benefits of having the property in the trust.
Selling A House In An Irrevocable Trust
Selling a house in an irrevocable trust can be slightly more complicated, whether it is an owner-occupied property in Torrance or another part of LA County. Maybe you put a property in an irrevocable trust but want to downsize or move to a different part of town, here are your options:
- Break the trust with the beneficiary’s consent
- Sell the property as the trustee while the proceeds remain in the trust
Because of the nature of an irrevocable trust, you need the beneficiary’s consent to breach the trust and sell the house as your own. Whether the beneficiary is a relative or a loved one, you will need their formal consent to change the title of the home back to your name. Alternatively, you can sell the property without breaching the trust, meaning that any proceeds will remain in the trust.
Contact The Millea Team
Whether you are interested in selling an owner-occupied property in Torrance or simply looking for assistance in selling a property in a trust, Mike Millea has the expertise and experience to help you achieve your real estate goals. As a Los Angeles conservatorship real estate agent Mike Millea has developed a reputation for a stellar performance at meeting his customers’ needs. Contact Mike Millea and his team today to learn more about selling a house in a trust or to schedule a meeting with one of our real estate experts.