How to sell property held in trust
Selling Property Held In A Trust
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are you wondering
how or if you can sell property on the
dress
well that's what we're talking about
today so stick around
hi i'm charlotte from the waltz team
welcome to my channel
and if this is your first time here i'm
a real estate broker
certified probate specialist and trust
advisor
in the many cities of the inland empire
including redlands
fontana loma linda san bernardino
rancho cucamonga ontario and the high
desert
and every week i post tips insights and
updates
to help you gain clarity and in many
years of helping
executors and administrators sell the
property that a loved one left behind
all have agreed that the decedent's
thoughtfulness
and estate planning is essential
in helping the loved ones sell the
property after they are gone
so let me share first what a trust is
and then follow up with details of
selling an estate
if you are the successor trustee for
many people a revocable trust also known
as a living trust
is the best option for those left behind
to avoid
probate court now while you are alive
you can control the assets in the trust
including removing and selling
properties
and once you pass the trust becomes
irrevocable and cannot change
the assets and the trust then pass to
the beneficiaries
as per the trust exactly as you designed
it
one advantage of a revocable trust is
that it does not go through the probate
process
and in california probate can take up to
a year or more
to finalize watch my video on the
probate timeline for more details on
what could
delay in your probate process if you
own real estate in more than one state
such as a vacation home
your heirs will have to go through
probate in each state
with a living trust beneficiaries
receive their inheritance more quickly
and everything is done in the state
where they are because these assets do
not go through probate
and thus they don't become part of
public
record there's also an important privacy
aspect to such
trust almost any property owned by the
grand tour
the trust owner can go into a revocable
trust including
real estate on which there's a mortgage
along with mutual funds bank accounts
stocks
bonds and similar assets you also can
place motor vehicles
boats precious metals arts antiques
other valuables
all your personal belongings and your
revocable trust
if you own a small business including a
limited liability corporation
or even a partnership your portion may
go into your living trust
the retitling process may prove
cumbersome
but it's necessary when you purchase new
assets
after initially funding your trust you
can either have them titled in the trust
name from the beginning
or transfer them you cannot put iris and
and other qualified retirement accounts
into your trust but you can designate
the trust
as a beneficiary of those accounts the
same holds true for annuities and life
insurance policies
really quick before we get into the
details about selling property and
trust i just want to say thank you to
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now as promised let's talk about selling
the property if you are the grantor or
the owner of the trust
you can sell properties in a revocable
trust the same way you would sell
any other property titled in your own
name you can take the property out of
the trust and retitle it in your name
but that isn't necessary if you're
selling your primary residence you are
still subject to capital gains tax
but you can benefit from the exclusion
if you owned and lived in the home for
at least
two out of five years before the sale
date
you may exclude up to 250 000 in capital
gains if you're single
and up to 500 000 if you are married
and you've been filing jointly obviously
a trust cannot
live in a dwelling but as noted the irs
considers
trust property as that of the grand tour
for tax purposes
in most cases you can't claim the
exclusion
again if you've sold a primary home
and took advantage of the exclusion
during the two-year period
prior to that current sale
now if you are the successor trustee of
an estate like my
friend david there can be extraordinary
circumstances that may arise with the
property
and issues to consider before putting
that house on the market
from my experience every trust or
probate sale
is totally different there could be
sibling issues
there could be tax issues there could
even be tenant issues
on the positive side all the issues
are resolvable believe me let me share
what occurred in david's situation
he lived in another state and was
responsible for following his brother's
directions in the trust
the first step was securing the two
homes because they were both vacants
tenants needed to be removed so that
meant filing notices through the courts
next was a property assessment with a
thorough
evaluation of what would it take to make
the most
profit for the beneficiaries after that
thorough evaluation we determined that
one home
was not in a condition to bring it to
livable standards to sell
without investing a huge amount of money
that would not be recovered
so i conducted an investor's open house
with success
to increase his net by thousands of
dollars
for the other home with repair work and
staging and online marketing
it's sold very quickly and for over
market value
not every trust property goes through
such a challenging process
for instance sarah sold her loved ones
estate
it sold fast sold for over market value
with some very small number of repairs
so every situation is different comment
below
if you would like guidance in preparing
for your responsibilities as a successor
trustee
i'm here to help thank you for watching
and i'll see you next time
you