A Trust exists when one person (“Trustee) holds and owns property for the benefit of another (“Beneficiary”). The person setting up the Trust currently holds the assets and is known as the Settlor. Trustees are responsible for administering the Trust. The purpose is to transfer assets to the Trust leaving legal ownership through the Trust, yet still having some control over and utilizing the benefit of the assets held in Trust.
When the estate owns real property, a Trust Transfer Deed is recorded which is the legal document stating Settlor’s wishes, and sets up the Trust. This deed appoints the Trustee(s) and states their duties and powers, names the beneficiaries along with various rules and management of the Trust. Having proper legal representation is effective to make sure the deed is clear and meets certain tax requirements. It is important that the Trust Transfer Deed has been recorded with the County Recorderbefore a Trust sale can take place. If the deed has not been recorded upon death of Trustee, seek legal representation first to discuss the necessary steps prior to listing.
A Trust sale of real property involves death of a Trustee. When the estate chooses to sell the home, a Trust sale takes place in accord with instructions of a Trust and upon wishes of the beneficiaries of the trust. Since the Trust is a legal entity, it can hold title for the benefit of one or more persons or entities. Persons intended to benefit from the Trust are known as Beneficiaries. The Beneficiaries own “equitable title” to the property held by the Trust. The Trust provisions instruct Beneficiaries of their rights to the assets in the estates.
As a representative in the sale of Trust estates, there are specific contracts, forms, due diligence, disclosures and protocol involved. California Estate Planning, Trust and Probate Law provides specific instructions to buyers and sellers. The overall objective is to properly manage the maximum benefit for Beneficiaries while protecting interests of the decedent.
Steve Davis is a 30-year veteran of the real estate industry, and recognized real estate expert. Steve has completed hundreds of transactions totaling more than $300M. Additionally, Steve’s team adds over a decade of experience in the Trust and Probate sales arena. In working with the Steve Davis Team, rest assured a well-qualified team will earnestly represent the Trust estate, clearly communicate with legal counsel, update clients throughout, and diligently follow relevant protocol pursuant to California Law.
Disclaimer: This is not legal advice. Consult with a legal professional when dealing with matters discussed above. If you do not have trusted legal representation, contact Steve Davis Team and we will be happy to refer you to carefully selected legal advisors specializing in the desired area of need.
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Steve Davis Estates is a licensed real estate broker (00986011)independently owned and operated in the State of California, and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdraw without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. Exact dimensions can be obtained by retaining the services of an architect or engineer. This is not intended to solicit property already listed.
