Frequently Asked Questions about California Trust Sales

What is Trust Administration after the death of the a Grantor?

A “Grantor” Trustee is the person who formed the trust. Trust administration after the passing of a “Grantor” is the process of managing the assets/liabilities held in the trust, including bank accounts, investment accounts, retirement accounts, real property, and personal property for the benefit of the beneficiaries named in the living trust. These assets are to be administered as the instructions set forth in trust document in compliance with California Probate Code.

I’m Successor Trustee tasked with Trust Administration. What is the first thing I should do?

Generally speaking the first step after the passing of the “Grantor” is to contact a Trust Administration Attorney. The Attorney who formed the Living Trust is often the Attorney who will help a Successor Trustee administer the trust after the passing of the “Grantor” Trustee. The Trust Administration Attorney will review the complete Trust documents and offer an overview of what the Trust Administration responsibilities will entail.

The Living Trust specifies the Real Property is to be sold. Where do I start?

As part of the Trust Administration, the living trust document may specify the real property is to be sold. The next step is to contact a real estate agent familiar with trust sales. At Flow Properties we are California Association of Realtors Certified Probate & Trust Sale specialists, a certification held by less than 5% of real estate agents. The real estate agent can meet with you and offer valuable guidance and resources on how to proceed with the selling of the properties. Often times Trust Sale properties require a great deal of preparation, as there are often personal belongings that have to be distributed to beneficiaries or sold via estate sale. At Flow Properties we can help you through all aspects of the sale, from preparation through closing.

What is a “Date of Death” Valuation?

A Date of Death Valuation is report that indicates the value of real property on the day the Trustee passes on. This can be prepared by a licensed appraiser or licensed real estate broker. We offer this Date of Death valuation service for Successor Trustees & Trust Administration Attorneys. To request a Date of Death Valuation, please complete the form above.

What documents will I need to provide during the sale of the Real Property?

Prior to listing a trust property for sale, it’s a great idea to consult a title insurance company to see what they will require to clear title at the time of sale.

A title company will typically require the following documents:

• A Complete Copy of the Trust Document

• A Trust Certification

• Death Certificate of the Deceased Trustee

• Affidavit of Death

The title company may require additional documents to clear title. This is why it’s always a great idea to consult the title company and provide these documents long before the property is listed on the open market. At Flow Properties we can help you communicate with the title company and gather the necessary documents prior to when the home goes on the market.

What is an “Estate Sale”?

It’s very likely the beneficiaries of a Trust will not want to keep all of the personal belongings of the person who passed on. An Estate Sale is the selling of these personal belongings, generally prior to the selling of the Real Property. There are professional estate sale companies who can assist with organizing and selling personal items to collectors, estate sale goers etc… As a Successor Trustee it’s essential to work with a real estate agent who can help you coordinate an estate sale and clearing of the personal belongings the beneficiaries do not want to keep. We offer this service to help you with this part of the Trust Administration process.

What am I required to disclose during the sale as a Successor Trustee?

Often times a Successor Trustee has not personally lived in the real property, and therefor has very little knowledge of the property. In California there are still many disclosures required by law during the sale of the Real Property held in Trust. However, in lieu of the standard Transfer Disclosure Statement (TDS) and the Seller’s Property Questionnaire (SPQ), a Successor Trustee can provide an Exempt Seller Disclosure (ESD). For more information regarding the required disclosures contact us using the form above.

For More Information about Selling a Property Held in a Living Trust, REQUEST our Trust Sale Seller Guide