Did you know that only four out of ten Americans currently have a will or living trust? Part of this has to do with the confusion that often surrounds these types of estate planning. One common area of misunderstanding is a property that’s held in a trust.
Many individuals think that if a piece of real estate is in a trust, then it’s untouchable. However, this simply isn’t true. In this article, we’ll go over how you can sell property in trust, whether you’re the grantor or the beneficiary.
That way you can begin confidently crafting your estate planning. Let’s get started!
Can a Grantor Sell Property Held In Trust?
While a grantor can sell property in trust the way they can do it depends on the type of trust they have: a revocable trust or an irrevocable trust. A revocable trust gives the grantor the power to change it at any time.
As such, the grantor can either sell the house through the trustee, keeping the funds in the trust. Or, they can transfer the real estate to their name and sell it themselves.
Irrevocable trusts are harder to deal with because they require the consent of the beneficiaries. As such, you have two options. You can break the trust as long as you get permission from the beneficiaries.
Or, you can keep the trust and sell the house. This means that the funds will go back into the trust.
Can the Beneficiaries Sell Property After It’s Inherited?
Once the grantor passes, then the trust becomes irrevocable. During this time the trustee will begin distributing the assets according to the wishes of the grantor. If real estate is included in the trust and it’s distributed to you, then it’s yours to sell.
If you need to share the real estate with other beneficiaries, then you will need to distribute any assets gained.
How Can You Sell Property Held In a Trust Fast?
There’s a lot of reasons why you might want to sell real estate gained through a trust quickly. For most people, it involves avoiding the tax implications that accompany the property.
Unfortunately, selling a house is often a lengthy process that can involve lots of hidden fees. Luckily, there are services, like these House Hunters, that will handle the sale for you in a way that’s both quick and painless.
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We hope this article helped you answer the question, How can you sell property held in trust? As you can see, it’s not hard to sell a property that’s been inherited through a trust.
In fact, in many cases, it’s preferable to avoid capital gain taxes that accompany this property. So, if selling is the right move for you, then contact a professional that has experience with property held in trust so that they can work quickly for you.