Transactions Involving a Family Trust
Sales or acquisitions by trustees of a trust can potentially be a bit more involved and require assistance from the trustees to help keep the process moving smoothly toward a timely close.
PROPERTY HELD BY ORIGINAL TRUSTEES
Trustee Checklist
Complete tax forms with names and social security numbers of all the individuals involved in the trust or have instructions for how the transaction tax return will be submitted.
Be prepared to complete a Certification of Trust.
Be prepared to gather and submit a full copy of the trust.
Confirm that the Trustee’s bank account is open and ready to receive proceeds.
PROPERTY HELD BY SUCCESSOR TRUSTEES
Agent Checklist
Submit fully executed Representative Capacity Signature Disclosure (C.A.R. form RCSD-S).
Plan to order any required city reports early.
Ask escrow to order preliminary reports at listing or as soon as possible; long-term ownership preliminary reports may take longer to produce and may include older items that will take time to work through and clear.
Successor Trustee Checklist
Consult with tax professionals and obtain estate/trust tax IDs to complete tax forms in escrow. You can find more information at irs.gov.
Provide certified copies of death certificates for any deceased trustees and be prepared to complete a Certification of Trust.
Gather and be prepared to submit a full copy of the trust agreement.
Confirm that the bank account in the Trust’s name is open and ready to receive proceeds.
HELPFUL TIPS
Collaborate Early
Begin early collaboration with the escrow officer to assist with a timely closing.
Tax Savings for Heirs
Children and grandchildren may consider applying for a tax exemption if they inherited the property. Tax information for individual counties is available on each county tax collector’s website. Sales or acquisitions by trustees of a trust can potentially be a bit more involved and require assistance from the trustees to help keep the process moving smoothly toward a timely close.
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