As a Tampa will and trust lawyer, I’m often asked what the process looks like to sell a house if it’s moved into a Revocable Living Trust. People worry that they will need to ask permission from someone to sell their home, or that it will be difficult to put the house on the market when the time comes.
The simple answer is that selling a house in a trust looks like any other real estate transaction! When a Revocable Living Trust is made, the Grantor (the person who created the trust) and the Trustee (the person who has the authority to manage assets in the trust) are usually the same person. That means when you create your trust, you’ll still have full control over the property in it, even if it’s no longer personally in your name.
To that end, you have the right to enter into listing agreements with a broker, or you can sell the property outright at any time. The only major difference is that you will be signing all paperwork related to the sale as “trustee.” For example, if your house is owned by the “John Smith Living Trust,” at closing, you will sign the paperwork as “John Smith, Trustee, of the John Smith Living Trust.” If there is money that’s owed to you from the buyer at closing, the check would also be made out to “John Smith, Trustee, of the John Smith Living Trust.” The check would then be deposited into an account that’s owned by the trust, which again, the trustee has complete control over.
Selling a home in a trust is equally as simple for heirs when the Grantor or Trustmaker passes away. At this point, the named Successor Trustee will take over the role of managing assets in the trust. This includes the ability to list the home with a real estate broker and sign off on the deed at closing in the same way described above. The only caveat is that the Successor Trustee will need to distribute any proceeds from the sale to the beneficiaries according to the instructions set forth in the trust.
Will I Need Any Additional Documentation to Sell a Home in a Trust?
In preparation for closing, your title company will likely require a Certificate of Trust that’s signed by the attorney. Our clients can find a hard copy of their Certificate of Trust in the binder that we provide during the document signing. If the Grantor has passed, the successor trustee will also likely be asked to provide a death certificate. Finally, the title company will need the tax ID number for the trust, if applicable.
Have Additional Questions About Selling a Home in a Trust?
Please feel free to contact our Tampa will and trust lawyers for guidance. If you don’t currently have a trust because you were worried that selling the property down the road would be frustrating and unnecessarily complicated, we hope this information has put your mind at ease. We’d be happy to answer any additional questions about trusts that you have during an initial meeting with our attorneys. To schedule an appointment at our Brandon law firm call (813) 438-8503.