Emergencies occur when we least expect them, and to ensure long-term financial stability, it’s best to have a plan to weather them. When an emergency happens, be it a natural disaster, illness, or job loss, many people can find themselves struggling to keep up. Here are five essential tips to help you save for an […]
Everything You Need To Know Before Selling A Home From A Trust
Selling a home from a trust is not that much different than selling a home you own outright yourself. You must have the authority to sell the home and the title must be clear.
You may experience a few road bumps along the way but with an experienced real estate agent and lawyer, you can sell an inherited home from a trust.
Know What Kind Of Trust The Home Is In
There are many different types of trusts that the property can be held in, two of which are revocable and irrevocable.
In a revocable trust, the beneficiary cannot outright sell the home, as the grantor still owns the property. This is true even if you are living in the home. Only when the grantor dies will the property be transferred to a beneficiary and will they be able to sell the home—provided all legal documents are in order.
If the home is being held in an irrevocable trust, the trustee of the home has the power to sell, as ownership of the home has been transferred to them. Remember that the grantor still has some freedom of choices as to what ultimately happens to their home.
Make Sure The Title Is Clear
As with all homes, its title must be free and clear. Warranties of title guarantee a good and marketable title. Before putting a home from a trust on the market, you must show a copy of the trust documents to the title company that the title is clear and you have the authority and right to sell.
Have The IRS “Discharge” The Property From Tax Liens
45 days before the transaction date of selling the home, you need to have the IRS to “discharge” the property from either an estate or tax assessment lien. This means that when you sell the property, the buyer can take ownership of the title without a lien attached to it.
Have The Help Of A Realtor & Lawyer
Selling a home in a trust can be a complicated business. Have a trusted Realtor and lawyer on your side to help you through the process. A lawyer will review the terms of the trust agreement and Last Will and Testament to confirm that there are no encumbrances.