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Selling a house in a Trust can be daunting depending on how much work needs to be done to prepare the home to sell and who the successor trustee hires. Not all trust estates are alike and real estate professionals are not one size fits all.
Putting a house in a trust and putting property in a trust is a wise thing to do. Doing so avoids the costly and time-consuming process of probate. It allows the successor trustee to act on behalf of the trust estate without supervision by the probate court.
The process of selling a house that is in a trust before the creator of the trust passes away is different than selling a house in a trust after death.
Once the creator of a Revocable Trust dies, the Trust becomes irrevocable.
Selling a House in an Irrevocable Trust After Death
We were first contacted by the Successor Trustee of the Family Trust in January 2024. The estate representative resided out of the area and needed an experienced Trust Real Estate Professional capable of managing the entire process. Kathleen Daniels’ experience and qualifications set her apart from others in the industry. In addition to her years of experience, education, and training, Kathleen is certified in Professional Fiduciary Management for Trustees.
What follows is not an exhaustive list of the duties the seller (successor trustee) entrusted to Kathleen Daniels.
- Provide the Certified Public Accountant (“CPA”) with the documents and information requested
- Collaborate with the Trust Estate Attorney
- Provide no less than weekly client updates
- Prepare and Execute the Listing Agreement
- Provide the required documents to the title company to prepare and record the Affidavit-Death of Trustee
- Hire our trusted gardener to provide weekly property maintenance
- Hire a hauling company to remove the contents of the home
Our trusted hauling company is Bison Junk. Please do not be fooled by the name of the company. In no way is everything removed from a trust estate home “junk”. Everything that can be donated gets donated. The company provides a donation receipt for the estate. Unlike so many other companies that claim to donate items, this company does!
Once the contents of the home are removed the next steps are to complete the following:
- Home Inspection
- Termite Inspection
- Chimney Inspection
The Seller completed a Re-pipe. We knew from the onset that plumbing work would be necessary. We did not however know the extent.
We resourced our trusted trenchless plumber. All work was completed with a permit from the City of San Jose.
Once the plumbing work was completed:
- The home was professionally cleaned
- Light staging
- Photos and marketing
- Seller disclosures were prepared and signed
Selling Property Held in a Living Trust After Death
After nearly five (5) months the 3 Bedroom West San Jose Home was listed for sale in May 2024. The successor trustee did not want to complete upgrades other than the plumbing project. We work by design when selling a house in a trust. The work we do is customized to what the seller wants. We understand other agents who interviewed for the job were focused on updating the entire home. That is not what the seller wanted. Kathleen explained her marketing strategy and that none of what the other real estate agents recommended was necessary. All that is needed is to clear it out and clean it, and the buyers will come. And come they did.
Anatomy of Selling a Home in a Trust
It is Kathleen Daniels’ best practice when selling a house in a trust after death that it remains on the market for a full week. An offer deadline is set and noted in the MLS. Agents were asking if the seller would accept a preemptive offer. As the listing agent, Kathleen’s goal is for buyers to compete. Accepting a preemptive offer would eliminate competition. As a general rule, Kathleen does not represent buyers on the homes she lists. Her commitment is to represent the seller exclusively and to obtain the highest price on the best terms.
At the time of listing the home all of the seller disclosures and inspection reports are made available online. Buyers need to see the disclosures to make informed buying decisions. When selling a house in a trust, the successor trustee does not have information about the house that the deceased owner would have. This is among the many reasons Kathleen recommends getting inspections.
The list price of the home was $1,600,000. The home did have deferred maintenance and did need some updating.
Nine (9) days on the market, by design due to the holiday weekend.
Eight (8) offers were received.
The final sales price was $1,815,000. The offer the seller accepted was non-contingent. The buyers had conventional financing with thirty (30) days to close escrow. There were no issues with the escrow and the transaction closed on schedule.
The Seller was happy with the results and the buyers were delighted to get their offer accepted.
Certified Probate and Trust Real Estate Specialist
Kathleen Daniels is an independent Real Estate Broker, Certified Probate Real Estate Specialist (“CPRES”), and Certified in Professional Fiduciary Management for Trustees. When selling a house in a Trust the successor trustee has a fiduciary duty to exercise prudence in who they hire. If you need help selling a house that is in a trust, contact Kathleen for a consultation. Let Kathleen’s years of experience, knowledge, and training go to work for you.