Do you or someone you know have an irrevocable trust? These legal agreements benefit all parties involved, but you’ll find that making changes to this ironclad document proves fairly difficult. For example, some cases require you to revoke the trust first, and it isn’t always straightforward to know which cases are which.
Can you sell a house in an irrevocable trust, for instance? How?
Although Wise Property Buyers is based in Livonia, Michigan, we constantly have interested homeowners ask, “How can I sell my house fast in Detroit or other nearby areas that we do business in?” Have an irrevocable trust? We’ll explain the selling process below in more detail.
What Is an Irrevocable Trust?
An irrevocable trust, like a will, is a legal document that explains the distribution of funds and assets between beneficiaries after the grantor’s death. It benefits the grantor since they don’t have to pay taxes on the assets in the trust (or worry about creditors or lawyers coming after them in court cases). However, while you can terminate or alter a will at any time, irrevocable trusts are just that – irrevocable.
By law, you cannot revoke or change the trust after creating it – unless you undergo a multi-step process with the beneficiaries’ approval. If that’s the case, can you sell a house in an irrevocable trust? Let’s weigh your options here.
Selling a Home That Falls Under an Irrevocable Trust
Yes, you can sell your home in an irrevocable trust, but you must go through your trustee.
The trustee is the third-party individual or corporation managing the trust. They look out for the trust beneficiaries’ best interests, so if you suggest a property sale, the trustee will insist upon going over the purposes of the trust with an attorney. Together, these parties determine whether a trust property sale is allowable and appropriate and will benefit those the trust serves.
Let’s say that the trustee says you can sell. First, discuss tax liabilities; these taxes can be high. Are tax exemptions available to reduce your tax burden?
Hiring a Real Estate Professional
Involving a real estate agent might be part of the trust’s terms surrounding the property sale for a fair market value. More cost-effective solutions include negotiating fees or opting for a discount real estate broker.
Can you sell a house in an irrevocable trust? With the trustee’s permission, an agent would point out the vital documents to proceed under the law – such as a settler’s death certificate, house deed, or mortgage and tax documents.
Listing the house, conducting viewings, and closing follows.
Other Steps After Selling
Of course, selling trust houses isn’t the end of the trust sale process. A trustee must then:
- Verify the property sale.
- File papers with the court.
- Distribute proceeds to all beneficiaries (lump sum or multiple payments)
- File a U.S. Form 1041.
The Selling Process Made Easy by Wise Property Buyers!
Can you sell a house in an irrevocable trust for cash? With different ways to sell a house, beneficiary rights and trust ownership are only two facets. Chat with Wise Property Buyers about immediate cash payouts and no-strings home sales at (313) 513-8824!