Trust Sale in Real Estate

Selling real estate held in a trust requires understanding how trusts work, what authority the trustee has, and how to handle the process with care and accuracy. With the right preparation and guidance, a trust sale can move smoothly, avoid court delays, and protect all parties involved.

What Is a Trust?

A trust is a legal arrangement in which one person (the trustor) transfers ownership of assets to another person (the trustee) to manage on behalf of others (the beneficiaries). The trustee must follow the terms of the trust and act in the best interests of the beneficiaries.

Trustor; Creates the trust and defines how the assets are to be managed.
Trustee; Manages the assets according to the trust’s terms and can be replaced if needed.
Beneficiaries: Receive the benefits of the trust, such as income or proceeds from a property sale.

What Is a Trust Sale?

A trust sale happens when real estate that is part of a trust is sold. The trustee manages the sale according to the trust document and works with professionals such as real estate agents, attorneys, and accountants to ensure the transaction complies with state law and benefits the beneficiaries.

There are three common types of trusts:

Revocable (Living) Trust: The trustor retains control and can usually sell the property without court involvement.
Irrevocable Trust: The trustee must follow specific instructions and may need approval from beneficiaries or a court before selling.
Testamentary Trust: Created through a will, this type of trust often requires probate and takes more time to finalize.

Understanding which type of trust holds the property helps determine how the sale should proceed.

Preparing to Sell a Property in a Trust

Before listing a property held in a trust, it is important to understand its value and potential. If the land itself is the main source of value, research zoning, lot size, and future development opportunities. If the home adds value, consider ordering a pre-inspection to uncover any maintenance issues before going on the market. This can prevent surprises during escrow and help the sale go more smoothly.

Take simple steps to make the property more appealing: refresh the paint, clean up the landscaping, and make small updates that show the home has been cared for. Reviewing the property’s permit history with the Building and Safety Department can also help confirm that everything is in compliance.

Being proactive builds trust with buyers and strengthens your position when negotiating.

What Is a Trust Sale Without Court Confirmation?

A trust sale without court confirmation, also known as a sale with full authority, allows the trustee to sell the property independently. This is possible when the trust falls under the Independent Administration of Estates Act (IAEA), which grants the trustee clear authority to handle the sale without additional court approval. It is faster and simpler than sales that require court supervision.

Steps in Selling Property Held in a Trust

Gather Key Documents
Obtain the Certification of Trust, death certificate (if applicable), and the trust’s tax identification number.

Hire Experienced Professionals
Work with a real estate agent familiar with trust and probate sales.

Market the Property
Collaborate with your agent to position the home competitively, attract qualified buyers, and negotiate offers.

Complete the Sale
Once the transaction closes, the trustee distributes proceeds according to the trust’s instructions.

Benefits of Holding Property in a Trust

• Avoids Probate: Keeps the property out of lengthy court proceedings.

• Maintains Privacy: Trust records are not part of public court filings.

• Speeds Up Distribution: Transfers ownership and funds faster than probate.

• Provides Flexibility: Allows management of assets in case of incapacity.

• May Offer Tax Advantages: Depending on how the trust is structured.

• Protects Assets: Certain trusts shield property from creditors or legal claims.

• Simplifies Multi-State Ownership: Eliminates the need for multiple probates.

Trust Sale vs. Estate Sale

A trust sale transfers property directly to beneficiaries under the terms of the trust, avoiding probate. An estate sale typically requires court involvement to pay debts and taxes before heirs receive the remaining assets.

Trust sales are usually faster, more private, and less expensive.

Why Work with a Professional

Trust property sales require precision and legal awareness. Trustees must follow California Probate Code requirements and act in the beneficiaries’ best interests. Working with a professional who understands trust sales ensures compliance, transparency, and the highest possible outcome.

I have extensive experience guiding trustees, beneficiaries, and families through every stage of a trust sale. From understanding authority and disclosure requirements to preparing, pricing, and marketing the property, I make sure each step is handled carefully and efficiently.

Whether your property is valued for its land, its income potential, or its legacy, my goal is to help you achieve a smooth and successful sale with clarity and confidence.

Start with a Conversation

If you are a trustee, beneficiary, or family member considering selling property in a trust, contact me to discuss your goals. I can review your situation, explain your options, and provide a clear plan to move forward with confidence.