As a Trustee, Can a Property Be Sold

Can a trustee sell a property

In accordance with California Probate Law, after the trust’s creator has passed away, a trustee possesses the authority to sell trust property. This responsibility stems from the trust placed in them to manage assets diligently and in good faith. Such assets notably encompass real estate.

In accordance with California Probate Law, after the trust’s creator has passed away, a trustee possesses the authority to sell trust property. This responsibility stems from the trust placed in them to manage assets diligently and in good faith. Such assets notably encompass real estate.

Yes. If one of the trustee’s duties is to sell real estate (which can sometimes be found in the trust instrument), then they have the power to sell the property; if you are unsure if your trustee has this power, set up a consultation with an attorney. When a trustee sells the property, they act on behalf of the trust as a fiduciary. The trustee must act in good faith and per state law and the trust agreement terms. When selling property, stringent record-keeping procedures must be followed so that nothing is missed or overlooked.

What is the trustee’s power to sell a property?

The trustee has whatever powers are specified in the trust instrument. The trust instrument controls what powers they may have. The powers of a trustee are also set out in either state law or state case law (which are legal precedents established by appellate courts). State law may authorize a trustee to sell trust property regardless of what is stated in the trust instrument. In addition, if one of the purposes of the trust is to sell property, that may give rise to another authorization for the sale.

Can a trustee sell trust property without all beneficiaries approving?

Under California Probate Law, trustees generally have the authority to sell trust assets without obtaining approval from all beneficiaries. However, it’s recommended to seek consensus and secure written agreements. Maintaining open communication and documenting transactions ensures transparency and trust among all parties involved.

Trustees are typically bound by the trust document’s terms. If it mandates consultation with beneficiaries prior to property sales, the trustee must adhere. However, in many instances, trustees can sell property without obtaining explicit approval from all beneficiaries.

Can a trustee sell a property?

Yes. If one of the trustee’s duties is to sell real estate (which can sometimes be found in the trust instrument), then they have the power to sell the property; if you are unsure if your trustee has this power, set up a consultation with an attorney. When a trustee sells the property, they act on behalf of the trust as a fiduciary. The trustee must act in good faith and per state law and the trust agreement terms. When selling property, stringent record-keeping procedures must be followed so that nothing is missed or overlooked.

What is the trustee’s power to sell a property?

The trustee has whatever powers are specified in the trust instrument. The trust instrument controls what powers they may have. The powers of a trustee are also set out in either state law or state case law (which are legal precedents established by appellate courts). State law may authorize a trustee to sell trust property regardless of what is stated in the trust instrument. In addition, if one of the purposes of the trust is to sell property, that may give rise to another authorization for the sale.

How does a trustee conduct the sale of the property?

A trustee generally conducts the sale of property in the same manner as any other seller, although there are some additional steps that a trustee must take. First, the trustee will need to determine whether an individual or trust owns the property. If it is owned by an individual and not a trust, then no unique action is required.

If a trust owns it, the trustee must prove that they have the power to sell the property. The easiest way to do this is for the trustee to attach a copy of the “Certificate of Trust” to your listing agreement with your real estate agent.

Can a trustee sell the trust property without all beneficiaries approving

Under California Probate Law, trustees generally have the authority to sell trust assets without obtaining approval from all beneficiaries. However, it’s recommended to seek consensus and secure written agreements. Maintaining open communication and documenting transactions ensures transparency and trust among all parties involved.

At the death of a trustor, all interested parties wonder if the trustee can sell the trust property without all beneficiaries’ approval. The trustee cannot sell real estate belonging to an irrevocable trust without written consent from all beneficiaries. Now if it was a living trust, there might be provisions in the original living trust document allowing for sale without beneficiary approval in some instances. If such provisions exist, they must be followed closely. So, it depends on the trust document. Now, the trustee must complete with the trustor’s wishes, and if selling a property is necessary, then in good faith, it’s for the benefit of the trust and to fulfill the rights of all the beneficiaries it can be sold.

If there are multiple beneficiaries, the unanimous consent of all beneficiaries may be required before making any changes to trust assets. However, suppose the trust contains language that gives sole power to act upon assets to one person or entity. In that case, this power overrides any disagreements among beneficiaries about how trust assets should be managed or distributed.

What is required of a trustee when they sell a property?

The trust document may specify what process the trustee must follow when they sell a property. This can include requiring offers to be publicly advertised and requiring at least two independent valuations before accepting an offer.

Suppose the trust document does not specify how sales are to be conducted. In that case, it is usual for trustees to use an open market sale process which involves advertising the property for sale and inviting offers from potential buyers. To learn more or set up an appointment, call Hess-Verdon at (949) 706-7300!

Does a trustee own the property

A trustee holds legal title to property held within a trust, yet does not directly own it themselves. Their job is to manage it according to instructions from its settlor for the benefit of all beneficiaries of that trust and ensure it is managed effectively in their best interest.

Can a Trustee Buy Property from the Trust?

In some jurisdictions, a trustee may be able to purchase property from the trust, but this usually requires careful adherence to the trust’s governing document, local laws, and general principles of fiduciary duty.

Here’s what you should know:

Fiduciary Duty: Trustees owe a fiduciary duty to the beneficiaries of the trust. This means they must act in the best interests of the beneficiaries, with the utmost good faith, loyalty, and care. Any transaction, including a purchase of property from the trust, must align with this duty.

Fair Market Value: If a trustee purchases property from the trust, it typically must be at fair market value. This means the trustee should not get a “deal” on the property that would otherwise disadvantage the beneficiaries.

Independent Appraisal: To ensure that the transaction is at fair market value, an independent appraisal might be required. This helps to ensure that the price is fair and reasonable.

Conflict of Interest: Buying property from the trust might create a conflict of interest. The trustee is supposed to act solely in the interest of the beneficiaries, and purchasing property for themselves could be seen as acting in their own interest instead. Care must be taken to navigate this potential conflict.

Trust Terms and Local Laws: The trust document itself, as well as local laws, may include specific provisions or restrictions regarding transactions between the trust and the trustee. These must be carefully reviewed and followed.

Approval from Beneficiaries or Courts: In some cases, it may be necessary or prudent to seek the consent of the beneficiaries or approval from a court to ensure that the transaction is above board and in line with the trustee’s fiduciary duties.

Documentation: Proper documentation of the transaction, including the reasoning, the valuation, and compliance with all legal requirements, is vital.

In conclusion, while it might be legally possible for a trustee to buy property from the trust, it is a complex transaction fraught with potential legal and ethical pitfalls. If you find yourself in this situation, consulting with a legal professional experienced in trust law in your jurisdiction would be essential.

Real Estate Law

The skilled and knowledgeable real estate attorneys at Hess-Verdon and Associates, PLC, have extensive experience in real estate planning and dispute resolution. In order to best serve our clients, we meet and strategize with each of our clients to understand the unique nature of their goals and ultimate objectives.

The firm’s experienced real estate attorneys have expereince representing a range of property owners, both residential and commercial and have been successful in achieving their goals.

Our Real Estate practice provides advice in the following areas:

• Real Estate Purchase Agreements, Leases, Etc.
• Property Tax Issues
• Titling of Residential, Commercial and Income Properties
• Commercial Property Litigation
• Disputes Over Income Properties
• Forming Limited Liability Companies (LLC) for real estate ownership

Real Estate Legal Advisors

Our clients range from individuals, brokers, family-owned corporations and partnerships. We provide advice and guidance in connection with the daily legal and contractual issues faced by our clients who own investment real estate.

Delivery and Cost of Premier Services

Our clients want – and we deliver rapid turnaround, premier quality, and client-focused fee arrangements that reflect our clients’ needs for cost-saving and predictable fees.