Selling a home held in trust is not that different than any other real estate transaction; it does require you to work closely with the trustee who administers the property.
Because you might not know all the legal terms, let’s take a look at a few definitions before we dig into the topic.
As the trustee, you are the administrator who handles all the assets of the trust. You are responsible for safeguarding the holdings for the grantor (if they are still living but perhaps incapacitated) and the beneficiary.
If the property is handed down to you, the beneficiary, you can either choose to sell the property and move the profits from the sale over to your account or you can transfer title over to yourself and keep the property.
First, work with an attorney to verify that the trust document includes a provision enabling the trustee the power to sell assets involved in the trust (i.e., the house). This is typically how a trust is worded.
You should then go ahead and begin interviewing real estate agents. You will want to look for a real estate agent that is an expert listing agent in the area the home is located in. Your chosen realtor will need to see the trust documents, as they are obligated to confirm that the trust grants the trustee the authority to sell the home.
Additionally, as the trustee you must prove to the title company that you are empowered to sell the property. The title company might also request a copy of the grantor’s death certificate (if applicable), a Certification of Trust, and a tax ID number.
Once you hire the perfect real estate agent to list your home, you will begin the selling process by cleaning and decluttering the home. Check out our article about selling your parents home for some additional insights on how to interview, declutter, organize and get a home that you are not occupying ready for market!
After you’ve cleaned and stored all the small items in the home, a stager will come in and assess the home’s condition. They may suggest painting, patching up holes and moving furniture around or bringing in staged furniture and decor pieces. All of this work is to help you increase the value of the home and help it sell faster! Your real estate agent will hire the very best experts in the area that understand the market and how to fix up a home for sale.
[ Learn how to prep for open houses & showings here ]
After the closing of the home, the money from the real property sale rolls into the trust.
The trustee can then freely disperse funds to your or hold them as assets of the trust.
While those steps sound straightforward, laws vary from state to state. And, you know that nothing is as simple as it seems. Bear in mind that when you sell a property, including land or a home in a trust, there are tax implications.
Be sure to engage professional services before you list the home for sale to maximize your earnings. Some of the professionals who can help you are the following:
Regardless of whether you’re a trustee or a beneficiary, Glass House Real Estate would be honored to help you list this home. We have the necessary expertise to navigate through this transaction and will be with you every step of the way.