Selling your home is a significant financial decision, and if your property is held in a revocable trust, there are important legal steps to consider before closing the sale. Many homeowners use trusts to avoid probate and simplify estate planning, but when it comes time to sell, working with an experienced estate planning and real estate attorney is crucial.
At Antonoplos & Associates, our team of estate planning and real estate attorneys can guide you through the process, ensuring your sale goes smoothly while keeping your trust intact.
1. Confirm How the Property is Titled
Before listing your home for sale, check the deed to confirm that your trust is the current owner. Typically, the title will be in the name of the trustee(s) of your revocable trust. If you’re unsure, a title search can verify ownership and uncover any potential issues before closing.
2. Review Your Authority to Sell
If you are the trustee of your revocable trust, you likely have the authority to sell the property without additional approvals. However, some trust documents require co-trustee or beneficiary approval before selling. A thorough review of your trust agreement or consulting with Antonoplos & Associates can help ensure you’re legally authorized to proceed.
3. Determine Whether You Need to Remove the Property from the Trust
While some title companies allow property sales directly from a trust, others may require the home to be transferred back to your individual name before closing. If this step is necessary, you’ll need to execute a deed transferring ownership from the trust to yourself. Once the sale is complete, if you’re purchasing a new home, you can re-title it into the trust to maintain estate planning benefits.
4. Understand the Tax Implications
One of the advantages of a revocable trust is that it does not impact your taxes—the IRS treats it as your personal asset. When selling a home:
- You may still qualify for the capital gains tax exclusion ($250,000 for individuals, $500,000 for married couples on a primary residence).
- The sale proceeds will be reported on your personal tax return, not a separate trust return.
Antonoplos & Associates can help you navigate any potential tax issues related to your sale.
5. Update Your Trust and Estate Plan
Once your sale is complete, it’s important to update your revocable trust and overall estate plan. This includes:
- Removing the sold property from the trust.
- Adding a newly purchased property (if applicable).
- Adjusting financial distributions if your assets have changed.
By keeping your estate plan up to date, you ensure that your assets are properly managed and that your heirs avoid unnecessary probate or legal complications.
Work with Experienced Estate Planning and Real Estate Attorneys
Selling a home in a revocable trust involves legal and financial considerations that require expert guidance. Antonoplos & Associates has extensive experience in estate planning, trust administration, and real estate transactions. Their team can help you:
- Review your trust and selling authority.
- Ensure a smooth transfer of property.
- Address any tax or legal concerns related to the sale.
For personalized assistance with your home sale and trust updates, contact Antonoplos & Associates today or click the button below.