When Real Estate Is Held in a Trust – What to Know Before Selling

Trusts Can Simplify Real Estate — But They Don’t Eliminate All Risks

When someone passes away, one of the most common phrases I hear from attorneys, fiduciaries, and family members is:

“The property is in a trust — that means we can sell it, right?”

In many cases, yes — if the trust is properly created and funded, you can avoid probate. But that doesn’t mean the process is automatic, simple, or risk-free.

As a Certified Probate Real Estate Specialist in Arizona, I’ve worked on dozens of estate property sales involving trusts. Some go smoothly, others reveal title issues, legal gaps, or unexpected disputes.

This article outlines exactly what to know if you’re a trustee, personal representative, or attorney involved in selling a home held in a trust — and how to protect the estate during the process.

What Does It Mean When a Home Is “In a Trust”?

When someone creates a revocable living trust, they typically retitle their real estate into the name of the trust.

Instead of being owned by “John Smith,” the property is now owned by:
“John Smith, Trustee of the John Smith Living Trust dated January 1, 2015”

That means when John passes away, the property:

• Does not pass through probate
  
  

• Is controlled by the successor trustee named in the trust
  
  

• Can potentially be sold, rented, or transferred without court involvement
  
  

But that’s only if the paperwork — and the timing — was handled correctly.

Common Issues I See with Trust-Owned Real Estate

Even when the intent was clear, there are several red flags that can complicate or even prevent a smooth sale.

1. The Deed Was Never Retitled

The most frequent problem I see? The trust was created, but the property deed was never formally transferred into it.

If the deed is still in the decedent’s name, the trust has no legal control — and the home may still need to go through probate.

That’s why one of the first things I do in any trust case is pull a title report to confirm actual ownership.

2. The Trust Is Outdated, Invalid, or Disputed

Even if the deed is correct, problems arise when:

• The trust isn’t notarized
  
  

• There are multiple versions of the trust
  
  

• Key pages (like the property schedule) are missing
  
  

• The trustee named has already passed away
  
  

• There’s a dispute over successor trustees or beneficiaries
  
  

I always coordinate with the estate’s attorney to ensure the trust is valid and the trustee has clear legal authority to sell.

3. The Trustee Doesn’t Know What to Do

Successor trustees are often family members — not professionals.

They may not realize they:

• Owe fiduciary duties to all beneficiaries
  
  

• Need to document everything
  
  

• Must coordinate title, insurance, taxes, cleanout, staging, and escrow
  
  

• May be personally liable if they make a mistake
  
  

That’s why my role is not just listing the property — it’s helping trustees navigate the entire real estate process with compliance, transparency, and professionalism.

Step-by-Step: How to Sell Real Estate Held in a Trust

Here’s what I recommend for every estate where real property is held in a trust:

Step 1: Confirm the Trust Is Funded

The property must be legally titled to the trust. You can confirm this by:

• Reviewing the recorded deed
  
  

• Looking for language that shows the trust owns the property
  
  

• Pulling a title report from a reputable title company
  
  

If it’s not funded correctly, the home cannot be sold under the trust — probate will likely be required.

Step 2: Review the Trust Language

With the help of an estate attorney, verify that the trust:

• Grants the trustee the power to sell real estate
  
  

• Names a current, living, and competent successor trustee
  
  

• Doesn’t contain restrictions or conflicts (e.g., “retain home until child reaches age 25”)
  
  

If anything is unclear, it’s better to resolve it before listing.

Step 3: Determine the Beneficiaries

A good trustee keeps all beneficiaries informed. Even if the trust doesn’t require their approval to sell, failing to communicate can lead to disputes and delays.

As a neutral third-party agent, I can:

• Provide pricing opinions backed by data
  
  

• Explain the sales process
  
  

• Help set reasonable expectations
  
  

This helps reduce conflict and preserve relationships.

Step 4: Prepare the Property

Many trust-owned homes have been occupied by the decedent for years — sometimes decades.

Common issues include:

• Outdated systems (HVAC, plumbing, electrical)
  
  

• Deferred maintenance
  
  

• Hoarding or clutter
  
  

• Unpermitted additions
  
  

• Safety hazards (e.g., mold, trip hazards, exposed wiring)
  
  

I offer light property prep and strategic marketing support, including:

• Occupancy checks
  
  

• Trash outs and deep cleans
  
  

• Curb appeal improvements
  
  

• Minor repairs or staging (when appropriate)
  
  

The goal is to protect asset value — not just complete the sale.

Step 5: Coordinate Sale and Escrow

Once the home is market-ready:

• I list the property with targeted positioning
  
  

• Screen buyers for readiness and cash vs. loan offers
  
  

• Work with escrow to confirm trustee signing authority
  
  

• Provide regular updates to the attorney, PR, and beneficiaries
  
  

• Navigate the closing process efficiently
  
  

Additional Arizona-Specific Considerations

Arizona has unique nuances when it comes to trust real estate:

• Some title companies require a full trust certification before escrow
  
  

• If the trust includes property in multiple states, you may still need ancillary filings
  
  

• Reverse mortgages in Sun City or 55+ communities may require fast action
  
  

• Beneficiary deeds can create conflict if they contradict the trust
  
  

Each of these needs to be identified and addressed early. I work closely with estate attorneys and title officers to make sure there are no surprises at closing.

Why a CPRES Makes a Difference

As a Certified Probate Real Estate Specialist, I bring more than just sales expertise to the table.

I help:

• Verify authority and trust documents
  
  

• Prevent legal mistakes before they happen
  
  

• Communicate with all parties neutrally and professionally
  
  

• Preserve property value and reduce stress for everyone involved
  
  

This helps fiduciaries avoid liability, saves attorneys time, and helps families move forward with confidence.

Final Thoughts

When done correctly, selling a home held in a trust is faster and easier than going through probate — but it still requires diligence, documentation, and careful coordination.

Whether you’re a trustee, attorney, or PR:

• Confirm the deed
  
  

• Review the trust
  
  

• Keep beneficiaries informed
  
  

• And get experienced real estate guidance
  
  

If you’re preparing to sell trust real estate in Arizona and want an experienced partner to help handle it correctly, I’m here to help.