Sale of a Home Held in A Trust
A sale of a home held in a trust is very common. As an estate planning technique, many people have put their assets, including their homes, in a trust. The trust then becomes the owner of the home. This is usually done to protect the estate from a probate, a costly and public court proceeding.
A sale of a home held in a trust may have certain requirements. Even though trusts are not controlled by the courts there are rules that must be complied with. The attorney who will be doing the trust administration will advise the family what must be done.
A sale of a home held in a trust will necessitate that an agent request a property profile which will show that the property is, indeed, held in a trust.
If the owner of the home has passed away, the successor trustee must be identified because that person will be the person who may sell the property. The trust will identify the name of the successor trustee. That person may be the remaining Trustor spouse or an individual appointed by the original Trustors.
According to Placer Title Company, a title company may require certain trust documents to be provided to them:
- The title company may ask to see the trust to verify that the person who is acting as trustee is actually named in the trust.
- The title company may require a Certification of Trust signed by the successor trustee(s) and the attorney for the trust estate.
- The title company may require a death certificate if the original Trustor(s) is/are deceased.
- If the trustee is incapacitated, the trust will govern the succession of trustee(s).
- If a trustee resigns, the title company may require an acknowledgment of resignation.
- A Tax ID number may be needed if the original Trustor(s) is/are deceased.
- Disbursement of funds at close of escrow must be issued in the name of the trustee of the trust, so a trust account must be opened to receive funds.
- Questions may arise if a power of attorney may be used in the sale of trust property. According to Placer Title Company, "Unless the trust specifically provides that the trustee can appoint an attorney in fact, a power of attorney cannot be used."
This information applies to Alameda County, California. Other areas may have entirely different rules. The Successor Trustee should consult with an attorney in the area in which the property is being sold. I am not an attorney and do not give legal advice.
Sale of a Home Held in a Trust requires an experienced Realtors. If you have any questions about selling a home which is in a trust, call me at 510-504-5612