Everything You Need to Know About Selling a House in a Trust After Death
Selling a house that is held in a trust after the owner’s death is a complex legal process that takes multiple steps. If you are also dealing with the grief of a loved one’s passing, navigating the sales process can be overwhelming. You can make things easier for yourself and your family by hiring a St. Louis trusts attorney to help you achieve the legal resolutions that meet your needs.
Asset Distribution Is Determined By the Trust
A home or another property that is included in a trust is subject to the specific instructions and terms that the trust has in place for the distribution of assets. The grantor of the trust may have made a specific request regarding the home, such as bequeathing it to a particular family member or desiring its sale after death. The trustee is required to abide by the grantor’s wishes.
Depending on the grantor’s plan for the real estate, it may be transferred directly to a beneficiary, held within the trust for a specified amount of time or sold, with the proceeds divided among multiple beneficiaries. The trustee can begin distributing assets such as real estate to beneficiaries only after any debts and taxes the grantor still owes have been satisfied.
Your Options as a Trust Beneficiary
If you were listed as the beneficiary of a home or piece of property in a loved one’s estate plan, you will automatically assume the responsibilities of maintaining the property, keeping up with the mortgage and paying taxes. If you do not wish to keep the home, you can sell it or rent out the property as an investment.
The sale of a home in a trust must comply with the terms of the legal document as well as Missouri’s real estate laws. The proceeds of the sale will be distributed according to the instructions left in the trust or estate plan. The beneficiary who received the home may have to pay capital gains taxes once the property is sold.
What if There Are Multiple Beneficiaries?
A grantor naming multiple beneficiaries as the new owners of a home or property could cause complications. The beneficiaries may not agree on what to do with the property; some may wish to sell while others may wish to keep the home, for example. In this situation, the trustee will play the role of mediator. The trustee must act within the grantor’s wishes to resolve the dispute.
Resolving a dispute among beneficiaries may require mediation or assistance from an estate planning attorney. If an agreement on what to do with the home cannot be reached, the trustee may have no choice but to sell the home and distribute the proceeds equally among the beneficiaries of the trust.
When to Contact an Attorney
The trustee is the individual in charge of carrying out the grantor’s wishes after his or her passing. If this includes the sale of a home that is in the trust, the trustee can participate in the sale by explaining the terms of the trust, ensuring compliance and giving advice to the beneficiaries involved. Once the sale is complete, the trustee can also play a role in the distribution of the proceeds.
Another key person involved in the sale of a home in a trust is an estate planning attorney. A St. Louis estate planning lawyer can provide legal guidance throughout the sales process and mediate in the event of a dispute. A lawyer will ensure all necessary legal steps are completed to facilitate the proper sale of the property.
If you need to discuss a specific case involving trusts and real estate after the death of a loved one, contact TdD Attorneys at Law for a free consultation in St. Louis.