By Jason Gray
PINNACLE LAW PLLC
When considering the sale of a home held in a trust, many homeowners are often unsure about the process and its feasibility. The good news is that selling a home in a trust is not only possible but can also be straightforward with the right approach. Additionally, transferring your new home into the trust afterward offers significant benefits and cost savings.
A trust is a legal arrangement where one party, known as the trustee, holds property on behalf of another party, the beneficiary. Trusts can be revocable or irrevocable, with revocable trusts being the most common for personal residences because they offer flexibility and control.
Selling a home held in a revocable trust is relatively simple. The trustee, who is often the homeowner, has the authority to sell the property. Before proceeding, it’s crucial to review the trust document to understand any specific provisions or requirements related to the sale of the property. If you are not the trustee, you need to work closely with them, as they have the legal authority to handle the sale. The trustee can list the home for sale just like any other property, and it is often advisable to work with a real estate agent experienced in trust sales. Once a buyer is found, the trustee will sign the necessary documents to transfer ownership to the buyer. The proceeds from the sale will go into the trust.
After selling your home, it’s a wise decision to transfer your new home into the trust. This process is also straightforward. First, complete the purchase of your new home as usual. Then, work with an attorney to prepare a deed that transfers ownership of the new home from your name to the trust. The new deed must be recorded with the county recorder’s office to make the transfer official.
There are several advantages to keeping your home in a trust. One of the most significant benefits is avoiding probate, which can be a lengthy and costly legal process. When a home is in a trust, it can be transferred to beneficiaries quickly and without court involvement. If the homeowner becomes incapacitated, the trustee can manage the property without the need for a court-appointed guardian or conservator. Trusts also offer greater privacy than wills because trust documents do not become public records. Revocable trusts provide flexibility to amend or revoke the trust as circumstances change.
By avoiding probate, you can save on attorney fees, court costs, and other expenses associated with the probate process. Additionally, the streamlined process of transferring property through a trust can reduce administrative burdens and delays. Selling a home in a trust and transferring your new home into the trust is a manageable process that offers numerous benefits. Not only does it provide peace of mind by ensuring your property is handled according to your wishes, but it also offers significant cost savings and efficiencies. Consulting with an estate planning attorney can help you navigate these processes smoothly and ensure all legal requirements are met.
Jason Gray is the owner of Pinnacle Estate Planning. To schedule a free consultation in Spokane, Coeur d’Alene, or Sandpoint, please call (509) 505-0665 or (208) 449-1213. You can also get more information at www.LawPinnacle.com
*This article is for informational purposes only and should not be construed as legal advice.
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