Clearing Up 5 Common Misconceptions about Selling Trust Property

Posted by Techyscouts | Posted on 06/10/2024
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    • If you’re planning to sell trust property, we feel that it’s important to know how the law works. Here are five of the most common misconceptions about it:

    1. It’s Not Much Different Than Selling Other Types of Property

    Unlike property held personally, you’ll often need to get permission from the trustees to sell it. However, this is not the case when it comes to a revocable trust. If a property is held in a revocable trust, it can be sold without the permission of the trustees while the holder of the property is alive. You can determine whether a trust is revocable or not by looking at the trust document.

    2. There are Only Two Types of Trusts

    While the critical difference between trusts when it comes to selling a property is whether or not it’s revocable, there are other distinctions as well. Luckily, a trust real estate broker in Los Angeles can help you determine what type of trust you have and any unique effects that this will have on the sale. We can help you to figure out the unique terms of your trust.

    3. Trust Properties Can’t Be Sold Until After the Holder Dies

    One common misconception about selling trust property is that it can’t be sold until the holder passes away. However, the trust holder can sell the property if the trust is revocable. A trust real estate broker in Los Angeles can help you determine whether your trust can be sold, and we’re the best one to choose.

    4. Revocable Trusts are Taxed After You Die

    Unlike irrevocable trusts, revocable trusts are passed on to co-trustees after you die. Thus, the assets will remain within your estate after you die. This means that they are not taxed. However, if the trust is irrevocable, it is taxed when it’s passed on after you die. The amount that it’s taxed depends on how much the trust is worth.

    In these cases, estate taxes may apply. They can be as high as 40%. However, these taxes only apply to large irrevocable trusts, which exceed $13.6 million in value. However, smaller trusts are not subject to an estate tax. We can help you to determine how much you’ll need to pay in taxes after the sale of a trust.

    5. Trusts are Only Taxed After They’re Passed On

    While large trusts are taxed after they’re passed on, all income from a trust is taxed the same as capital gains. This means that federal, local, and state taxes apply. The amount of taxes will depend on the amount that the trust increases in value.

    We’re the Best Los Angeles Trust Real Estate Agent

    If you’re in Los Angeles and are planning to sell trust property, it’s important to contact a skilled Los Angeles trust real estate agent. Luckily, Mike Millea has been helping trustees sell trust property for more than 20 years. Not only will we be able to help you sell your property, but we’ll also be able to help you better understand the terms of your unique trust. So, give us a call or contact us online today!

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