There are many benefits to putting a home in a trust. The true question is, can you sell a home in WA in a trust? Continue reading to learn more.
There are tax benefits to putting your home in a trust. Plus, it could help you qualify for Medicaid in your old age and could save your children tons of time and money during the probate process. However, putting your home in a trust can also complicate the selling process. Yes, you can sell your home in a trust, unless the documents of the trust preclude the home sale. However, the selling process depends on the type of trust you have and whether or not the grantor is still alive.
Here are a few scenarios in which you can sell a home in a trust.
Selling A Home As the Grantor In a Revocable Trust
A grantor can dissolve the trust or make changes at any time with a revocable trust. If you put your house in a revocable trust in the case of your passing, though you’re now considering a move to a smaller home where the weather is nice, you have a few options when it comes to selling:
You can either sell your home in Washington as the trustee and retain the trust proceeds or transfer the property title to your name and sell your home.
No matter what the case is, it is pretty straightforward to sell a home in a revocable trust. If you sell your home as a trustee, you will need to speak with the title company before the sale to verify the validity of that trust.You can, however, eliminate that step if you choose to transfer the title to your name first. Assuming your are eligible, you can claim capital gains exclusion.
Selling a Home As the Grantor In an Irrevocable Trust
If you put your home in an irrevocable trust, you will not be able to dissolve or alter it without the beneficiary consent. You have a few options if you decide to sell your home in an irrevocable trust:
You can either sell the home with the trust intact or break the trust with beneficiary permission.
If you decide to break the trust, you can take the title back and sell the home as your own.
Selling a Trust-Inherited Home
No matter if the home was in a revocable or irrevocable trust prior to the passing of the grantor, the trust will become irrevocable when the grantor passes. The trustee will then become responsible for the distribution of trust assets to the beneficiaries. A Trustee’s deed will need to be written up by an attorney, who will transfer ownership to the hands of the beneficiaries. In the case that you inherit a home, it is probably yours to sell.
If you’re looking to sell your inherited home fast, consider getting an offer from us here at HelloPad. We can purchase your home, even if it needs a bit of TLC. Our goal is to offer fair and transparent prices without closing costs or hidden fees.