How to Sell a House Held in an Irrevocable Trust
Posted by Techyscouts | Posted on 09/10/2024
At Michael Millea, we know the issues that can pop up when dealing with trusts, probate, and similar situations. That’s why we offer our clients the friendly faces and guiding hands they need to make the right decisions. If you want to know how to sell a house that’s part of an irrevocable trust, you came to the right place. Find out how we can help before you make an appointment.
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What is an Irrevocable Trust?
Let’s start with what the term irrevocable trust means. An irrevocable trust is one created by a person to give properties to a beneficiary. This is a lengthy process, but it helps the beneficiary enjoy the benefits of commercial properties and real estate like rental properties. The only downside is that the trust has some stiff rules. One of the big ones is that you cannot sell a home in a trust without a court order or permission from the beneficiary. A trust real estate agent Los Angeles broker or office can go over the other rules with you.
Who Can Be a Beneficiary?
Anyone with the original owner’s name can be a beneficiary of an irrevocable trust. Close family members are fairly common. An individual might name their children or spouse as a beneficiary. They can also name their parents and siblings along with any close friends they have.
Get Consent from the Beneficiary
The easiest way to sell trust property is with consent or permission from the beneficiary or beneficiaries. If the trust names multiple people, each one must agree to sell the home. You’ll need to hire a real estate agent and get an appraisal to determine the home’s value. Selling the home for less than its appraised value is illegal. Hiring a West LA trust real estate broker ensures you follow the local laws.
Go to Court
You may find yourself in a situation where one beneficiary doesn’t agree to sell the home. In that case, you’ll need to go to court. The court will ask why you want to sell the home. Good answers include paying for a person’s funeral costs or managing the long-term health care they need. Talk with a West LA trust real estate broker to get an idea of the home’s value and who may have an interest in buying it.
Sell Irrevocable Trust Property
While selling commercial or residential properties in an irrevocable trust is hard, it’s not impossible. As long as all beneficiaries agree, you can usually consult with a trust real estate agent in Los Angeles to look for buyers. Without permission from all named parties, a court order is required. Learn more about irrevocable trusts and selling properties in one when you call our office to schedule a free consultation.
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