Are you looking to sell a property held in trust? It’s not as simple as a typical real estate transaction, and without the right documents, you could face roadblocks. One of the most critical documents in the process is the declaration of trust, which outlines the authority to sell and the rights of the beneficiaries. See why this document is a must and how it prevents potential complications. Watch the video to discover the key steps for a smooth property sale and avoid common pitfalls.
Selling a property held in trust involves understanding legalities that vary by state. Trusts involve legal structures that often require extra steps and documentation to ensure everything is handled correctly. Whether you’re familiar with the intricacies of trusts or new to the process, understanding the requirements is crucial for a smooth transaction. Here’s everything you need to know if you’re selling a property held in trust.
Declaration of trust
One of the first things that will be requested is a copy of the trust, specifically the declaration of trust. This document is essential because it outlines key details such as who the beneficiaries are, who the trustee is, and what powers the trustee holds.
Why declaration of trust is a must
Many people mistakenly believe that if their property is held in trust, they don’t need to provide these documents. However, this assumption is false. Without the trust documents, it would be impossible to determine who the trustee is, whose trust it is, or if the beneficiaries are legitimate.
For instance, a trust can be named anything like the “Chicago Cubs Trust” and without the declaration of trust, it wouldn’t be clear who the trustee is or who the actual beneficiaries are. The same principle applies when selling a home. Just as the title company requires ID to verify the identity of the seller, the declaration of trust helps verify who has the authority to dispose of the property held in the trust.
Selling a property held in trust involves understanding the required legal documents, especially the declaration of trust. This document clarifies the trustee’s authority and the beneficiaries’ rights, ensuring the transaction is valid. Providing these trust documents helps prevent complications and ensures a smooth process.
If you find yourself in a similar situation or have questions regarding trusts and real estate, don’t hesitate to reach out for assistance. You can call me at 847-577-4476. I look forward to hearing from you!
