Selling A Home In A Trust

When you create a living trust, one of the first assets to be funded to the trust is your home. The attorney prepares and records a new deed so that your home is now titled in the name of your trust with you as trustee. As a result, you feel confident that upon your passing, your house will now go to your children according to your instructions. You don’t need an attorney anymore then, right? Not so fast.

One way an estate planning attorney can support you and your family is to assist your trustee during the home sale process, whether during your lifetime or after your passing. This is often a very difficult time for most families and your trustee would benefit from a familiar guiding hand.

Upon your passing, your trustee may be directed to sell the home as soon as possible or given discretion to hold on to the property until the market is more favorable. A date of death value appraisal establishes fair market value for tax purposes. An appraisal is generally recommended no matter when the trustee sells the property.

When listing the property for sale, the trust is the owner of the property, and the trustee is legally authorized to sell the home and would sign the listing agreement. When there is a ratified contract, the trustee would sign the contract. Once the buyer chooses a title company, it is important for the trustee to connect with the settlement officer to ensure the lines of communication remain open. Copying your attorney on an email is ideal.

Selling a home titled in the name of the trust involves attention to detail and proper documentation provided to the title company. During the settlement process, the title company will request a copy of the trust document, the tax identification number for the trust, and a death certificate. Condo or homeowners association transfer packages may need to be ordered and a payoff statement obtained if there is a mortgage or other lien.

Your estate planning attorney is a valuable member of the team during the home sale process. Your trustee would benefit from the attorney’s thorough review of all paperwork to ensure accuracy and a successful transaction.

Paula M. Mattson-Sarli is an experienced estate planning and elder law attorney. Her office is in Severna Park and the office number is 410-777-5916.