Selling a House in a Trust: A Step by Step Guide

Can you sell a house in a trust?
Yes, you can sell a house in a trust. When the home is titled in the trust, the trustee sells it on the trust’s behalf, usually without probate court. The trustee confirms the deed, reviews the trust, gives the title company a certification of trust, lists and sells the home, and then handles the proceeds as the trust directs. Once the home is ready, most trust sales close in about 30 to 45 days.

Selling a house in a trust is often simpler than families expect. When the home is titled in the name of the trust and the trust gives the trustee authority to sell, the sale usually moves forward without probate court. The trustee shows the title company their authority to sign, and from there, selling a home in a trust looks much like any other sale.

If you have recently become the trustee for a parent or loved one, you may be wondering where to start. First, confirm how the home is titled and what the trust says. Then we can make a plan for the property and work through the sale one step at a time.

What Is a Trust Sale in Real Estate?

A trust sale in real estate is the sale of a home or other property that is owned by a trust rather than by a person. Most often it is a revocable living trust that someone created during their lifetime so their home could pass to their family smoothly. While that person is living, they usually serve as their own trustee and keep making decisions about the home. After they pass away, the successor trustee named in the trust steps in to manage and sell the property under the trust’s terms.

For most families, the sale itself feels familiar. The home is prepared, priced, listed and sold. The difference is that the trustee signs on behalf of the trust, and the proceeds are handled according to the trust’s instructions. Because the home already belongs to the trust, it usually does not need to go through probate, which often makes a trust sale faster and more private than a probate sale.

Trust Sale vs. Probate Sale

	Trust Sale	Probate Sale
Who sells the home	The trustee	The executor or personal representative
Where authority comes from	The trust and state law	The court appointment and state law
Court involvement	Usually none for property held in the trust	Part of the probate process
Privacy	Private	Part of the public court record
Typical timeline	A few months	Often several months to a year or more
Where the proceeds go	Handled under the trust	Handled through the estate

A trust covers the property that was transferred into it. If a house was never retitled into the trust, an estate attorney can quickly identify the right process so the home can be sold.

Can You Sell a House in a Trust?

Yes. A trust can sell property just like a person can, with the trustee acting on its behalf. As long as the trust gives the trustee the power to sell, and most living trusts do, the trustee signs the listing agreement, the purchase contract and the closing documents for the trust. So if your house is in a trust, you can absolutely sell it.

Step by Step: How to Sell a House in a Trust

1. Confirm who owns the home

Start with the deed. It shows whether the property is actually titled in the name of the trust. The trust document and the deed work together. The deed confirms whether the home was transferred into the trust.

2. Review the trust

The trust names the trustee, explains what the trustee can do with the property, and may include instructions about when or how the home should be sold. An estate attorney can answer any questions about the wording.

3. Gather the paperwork

Title companies usually do not need to see the whole trust. Instead, they ask for a short summary called a certification of trust (some states call it a certificate or abstract of trust), which confirms the trust exists, names the current trustee and shows the authority to sell. If the original trustee has passed away, they will also ask for a death certificate. Requirements vary by state and title company, so bringing the title company in early keeps everything moving. I am always happy to recommend title professionals I trust.

4. Keep the beneficiaries informed

Many states require the trustee to notify beneficiaries within a set time after a death. Beyond those requirements, regular updates help. Share the appraisal, the asking price and offers so everyone understands the plan and has a chance to ask questions.

5. Get a date of death value

The value of inherited property on the date of death usually becomes the new tax basis for the beneficiaries, often called a stepped up basis, which can greatly reduce capital gains taxes when the home sells. A professional date of death appraisal documents that value. Your CPA can confirm how it applies to this home, since the rules depend on how the trust and property were set up.

6. Care for the home and make a plan

Until it sells, the trustee looks after the property. That means keeping insurance active (let the insurer know if the home is vacant), maintaining utilities, and keeping the yard and exterior looking cared for. This is also a good time to set aside family keepsakes and plan any estate sale or cleanout. We can walk through the home together and talk about what needs attention before the sale and what can wait.

7. Choose an agent who knows trust sales

An agent experienced with trusts and estates knows which documents the title company will ask for, how to price a home that may need some updating, and how to market it to the right buyers. They can also coordinate the contractors, cleaners and estate sale professionals that make the process easier, especially for trustees who live out of the area.

8. Prepare, price and list

Some homes are best sold as they are. Others benefit from cleaning, fresh paint or a few repairs. I like to see the home before you spend money on it. We can compare the cost of the work with what it is likely to add to the sale price and decide what is worth doing. From there, the home is listed, shown and sold like any other home, and the trustee reviews offers and signs as trustee.

9. Close and distribute the proceeds

At closing, the title company completes the transaction and sends the proceeds from the sale of the house in the trust as directed, typically to a bank account in the trust’s name. The trustee then pays final expenses and makes distributions under the trust’s terms, with guidance from an attorney and CPA as needed.

How Long Does It Take to Sell a House in a Trust?

Once the trustee’s authority is confirmed and the home is ready, a trust sale moves at the pace of a regular home sale. Escrow typically runs about 30 to 45 days after an offer is accepted. Preparing the home often takes a few weeks, and sometimes longer when belongings need to be sorted or the trustee lives out of town. Altogether, most trust sales close within a few months, which is often much quicker than a probate sale.

Selling Property Held in a Living Trust Before Death

Someone who created a revocable living trust and still serves as its trustee generally keeps full control of the home and can sell it, refinance it or move just as they would without a trust. The sale is signed in the name of the trust, and bringing the title company in early makes sure the paperwork matches how the property is titled.

Selling a House in an Irrevocable Trust

A trustee can often sell a house in an irrevocable trust, and the details depend on that trust’s terms and state law. Because the home belongs to the trust rather than to the person who created it, the trustee handles the sale under the trust’s instructions and the proceeds generally stay in the trust for its beneficiaries.

Selling a house in an irrevocable trust before death usually happens when the home no longer fits, such as a move closer to family or into assisted living. Selling a house in an irrevocable trust after death follows the same steps above.

Taxes work differently for some irrevocable trusts. The IRS has confirmed that certain property in an irrevocable trust does not receive a new tax basis at death, so have your estate attorney and CPA review the trust before you plan the sale.

Buying a Trust Sale Home

For buyers, buying a house from a trust works much like any other purchase. The trustee may know less about the home’s history than an owner would, especially if they never lived there, so plan time for inspections. The title company will confirm the trustee’s authority before closing. Buyers who come prepared with an inspection and flexible timing often find trust sale homes to be a great opportunity.

For more detail, you may also like my posts on how an estate sale compares to a trust sale, whether all heirs have to agree to sell and taxes on inherited property.

About the Author

Jolene Baijot is a real estate agent and Designated Broker with more than 25 years of experience helping families buy and sell homes. She holds the Certified Probate Real Estate Specialist (CPRES) and Accredited Buyer’s Representative (ABR) designations and is also a commercial broker. Having grown up in a family of interior designers, Jolene brings a designer’s eye to preparing homes for sale, from inherited homes that need a fresh look to properties managed by trustees who live far away.

Ready to Talk About Your Trust Sale?

Tell me about the home and where things stand. I can help you figure out what needs to be done and make a plan for the sale, whether you live nearby or are handling things from another state. Contact Jolene to get started. If the home is in Bellingham or Whatcom County, Josh and I handle trust and probate sales locally. See our Bellingham probate and trust real estate page.

This guide is general real estate information. An estate attorney and CPA can advise you on the trust, legal requirements and taxes for your situation.