Trust Sale in Real Estate
What is a Trust?
A trust is a legal arrangement where one party, the trustee, holds and manages assets on behalf of another party, the beneficiary. The individual who establishes the trust and transfers assets into it is called the grantor, settlor, or trustor. A Trustee oversees the trust, ensuring it operates according to the Trustor's wishes.
Who Creates and Controls a Trust?
Trustor: Creates the trust and defines its terms.
Trustee: Manages the trust’s assets, acting as a fiduciary. The Trustee may be replaced as needed.
Beneficiaries: Individuals or entities who benefit from the trust’s assets.
What is a Trust Sale?
A trust sale involves selling property held in a trust. Following the Trustor's instructions, the Trustee works with professionals like real estate agents, trust attorneys, and accountants to ensure the process benefits the Beneficiaries.
Steps to Sell a House in a Trust
Obtain Documents: Secure the Certification of Trust, death certificate, and the trust’s tax ID.
Hire Professionals: Engage a real estate agent experienced in trust sales.
Market and Negotiate: Collaborate with the agent to market the property and review offers.
Complete the Sale: Finalize the sale and distribute proceeds per the trust’s terms.
Benefits of Putting Property in a Trust
Avoid Probate: Bypass lengthy court processes.
Privacy: Keep details out of public records.
Faster Transfers: Streamline asset distribution.
Flexibility: Manage assets during incapacity.
Tax Benefits: Potential savings with proper structuring.
Asset Protection: Certain trusts safeguard property from creditors and lawsuits.
Multi-State Simplification: Trusts eliminate the need for multiple probate proceedings for out-of-state properties.
Family Compliance: Clear terms make it harder for relatives to contest asset distribution.
What is a Trust Sale Without Court Confirmation?
A trust sale without court confirmation often called a trust sale with full authority, allows the trustee to sell property independently, without court oversight. This is possible when the trust is established under the Independent Administration of Estates Act (IAEA), granting the trustee clear authority to manage the transaction as outlined in the trust documents.
FAQs About Trust Sales
What is the difference between a trust sale and an estate sale?
Trust Sale: Proceeds benefit Beneficiaries directly and avoid probate.
Estate Sale: Often involves probate to settle debts and taxes before distributing remaining funds to heirs.
Can you sell property in an irrevocable trust before death?
Yes, but the Trustee must:
Follow the trust’s terms.
Obtain Beneficiaries' consent if required.
Ensure compliance with legal obligations.
What are the disadvantages of putting property in a trust?
Higher setup costs.
Increased paperwork and management.
Limited asset protection for revocable trusts.
Irrevocable trusts are inflexible.
Key Steps to Buying a Trust Sale Property
Find Properties: Look for listings marketed as trust sales.
Verify Authority: Confirm the Trustee’s authority to sell.
Conduct Due Diligence: Perform inspections and review disclosures.
Secure Financing: Arrange traditional financing if needed.
Close the Sale: Complete escrow and transfer the deed.
Trusts vs. Probate:
Privacy: Trusts keep estate details private, while probate is public.
Speed: Trusts allow faster asset distribution; probate can take a year or more.
Cost: Trusts are typically less expensive than probate due to fewer fees.
Control: Unlike probate, trust lets the grantor specify asset distribution terms.
Flexibility: Trusts manage assets before and after death, while probate applies only post-death.
Probate Necessity: Required for assets without a trust or beneficiary designation, with court oversight resolving disputes if needed.
Why Hire Us
Whether selling or purchasing trust property, navigating the process requires expertise and precision. In California, trust property sales must comply with Probate Code provisions, ensuring fair transactions and full disclosure of material facts. Trustees must act in the beneficiaries' best interest, making professional guidance essential.
With our in-depth knowledge and experience, we streamline every step of the process, from legal compliance to marketing and closing.
We leverage market insights, high-quality photography, and targeted outreach to maximize your property’s exposure, attract serious buyers, and deliver exceptional results. Contact us at 310-422-9001 for a seamless and stress-free trust sale experience across Los Angeles, including Santa Monica, Venice, Beverly Hills, and surrounding areas.
Disclaimer: For questions about a personal or family trust or estate planning, please consult a trust attorney. We specialize in real estate services, assisting with the purchase and sale of trust properties. This page provides general information about trust-related real estate transactions and does not constitute legal advice.