Trust

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WHAT IS A “TRUST” AND WHAT IS A “TRUST SALE”?

A trust is a legal entity that can hold the title to a property or other assets for one or more people or entities. A trust sale is simply when a property that is owned by a trust is sold. In order for a trust sale to occur, all of the beneficiaries of the trust must agree to the sale, unless one person has been designated to be in control of the trust.

WHEN IS A TRUST USED?

Usually a property is put into a trust when the original owner has either passed away or is no longer able to manage his or her affairs. It is becoming common for property owners to put their home in a trust instead of a will.

WHO IS A “TRUSTEE”?

The trustee is the person who controls the trust and manages its assets. The trustee may be one of the beneficiaries of the trust or an independent person.

WHY IS A TRUST SALE USED?

Privacy is one reason a property is put into a trust because the trust, instead of individuals, will be named in any public documents regarding the property sale. Another reason is that a trust can be established which directs the proceeds go to all beneficiaries in predetermined amounts, even if one person is in charge. In cases of family disharmony, this can be a way for the property owner to make sure that the heirs receive proceeds according to their wishes, while making sure that a responsible party of their choosing is in charge of the details.

There can be significant tax benefits to putting real estate into a trust, including the reduction of estate and gift taxes. Trusts can also protect your assets from creditors and lawsuits, and allow heirs to avoid the delay and cost of probate court.

HOW IS A TRUST SALE HANDLED DIFFERENTLY?

A trust sale is handled like a regular sale, except the name of the seller is the name of the trust. The trustee signs documents and provides disclosures just as a traditional seller would. Barring special circumstances, the purchase should run in a normal fashion and on a regular timeline.

SPECIAL CONSIDERATIONS

The agent will need the trust documents to show that the individuals or individuals selling are allowed to sell the property held in the trust.

The agent will pass the trust documents to the title company, and the title company will go through them and see HOW the sellers can sell (who has signing authority, etc). Depending on the trust, the title company may need to get a tax ID number for the trust, and may need a death certificate if heirs are selling the property.

The trustee of the trust makes decisions regarding the sale.

The difficulty with selling properties in trusts is that often multiple people, who may or may not get along, are involved and may have different goals in regards to the property. To successfully manage a trust sale, an agent needs excellent personal and communication skills.

If you are a trustee contemplating the sale of real property, The PRESS Team has decades of experience representing sellers of real estate through trust, probate and conservatorship. We work closely with your attorney and financial advisors to assure that you understand the sale process and the implication of your decisions along the way. Please review our pages on trust sales and contact us for additional information.

Sell Trust

If you are a trustee contemplating the sale of real property, The PRESS Team has decades of experience representing sellers of real estate through trust, probate and conservatorship. We work closely with your attorney and financial advisors to assure that you understand the sale process and the implication of your decisions along the way. Please review our pages on trust sales and contact us for additional information.

Buy Trust

While the purchase of a property offered for sale through a trust may look just like a “normal” real estate transaction, it is subject to the standards established by the Probate Code.

To assure that they meet the terms and deadlines and complete their transaction without surprises, buyers are advised to work with a sales professional who is experienced in trust sales.

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