QUESTION
what do trustees do when trustor passes?
Asked on Sep 09th, 2014 on Trusts and Estates - California
More details to this question:
My sister and I are trustees for our mothers trust. What do we need to do in order to sell the house in Costa Mesa, CA? I did submit this question earlier but did not see an answer. Thank you
2 ANSWERS
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Trustees are empowered to sell property held in the name of the trust. As fiduciaries, you need to obtain fair value for the property, and you mustn't sell the property if the trust instrument says it is to be given to a specific person or is to be held for a term of years (unless the trust cannot pay its debts without selling the property). If you two are the sole beneficiaries of the trust, and your mother has now passed away, go ahead and list the property for sale. When it comes time to open escrow, the title company will want proof of the fact that you are currently the trustees and have power to sell the property. Provide them with whatever thay ask to have sent to them. The sales proceeds are trust assets until you distribute them; do distribute them in accordance with the terms of your mother's trust.
Answered on Sep 10th, 2014 at 2:26 PM
2 Awards
Assuming “the house in Costa Mesa” was your deceased mother’s house and it was properly deeded into the trust, the first step is to make certain all the terms of the trust are obeyed, so read it carefully and seek help if you do not understand the language. Successor trustees can become personally responsible to the creditors of the estate if those trustees knew of the creditors but refused to pay out of estate funds. There are some probate and tax rules that one must be aware of as well, especially if the children seek to own the house. Make an appointment or send an email if you are out of the state. We also have a large list of clientele who purchase estate property.
Thanks,Jon
Answered on Sep 10th, 2014 at 12:16 PM