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From a rev trust, If real prop is distributed to beneficiaries by deeds, and beneficiaries want to sell prop, what is best way?

Hollywood, FL |

I think the beneficiaries would agree on a realtor and each sign the realtor agreement then upon sell, the funds would be divided by the beneficiaries, is that right?

Attorney Answers 4

Posted

It would be better practice to have the trustee sell the property and then simply have the trust divide and distribute the proceeds upon sale. This would eliminate beneficiaries arguing and trying to control the process. This would also eliminate drafting of deeds and recording them with the recorder of deeds as this is an extra step. Get with a FL estates attorney before doing anything as there may be some specific Florida laws that may bear on this decision.

Hope this helps.

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LEGAL DISCLAIMER Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery Counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is sjfpc@comcast.net , his website is www.sjfpc.com. and his blog is <http://frommtaxes.wordpress.com/> Mr. Fromm is ethically required to state that the response herein is not legal advice and does not create an attorney/ client relationship. Also, there are no recognized legal specialties under Pennsylvania law. Any references to a trust, estate or tax lawyer refer only to the fact that Mr. Fromm limits his practice to these areas of the law. These responses are only in the form of legal education and are intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received. By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction, who is familiar with your specific facts and all of the circumstances and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question. Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency.

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Posted

If property has been distributed already, then the beneficiaries can sign Power of Attorney forms is it is practically difficult to have them all there to sign the sales documents. If the beneficiaries cannot agree, this could turn into a mess, however.

James Frederick

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Posted

As the other attorneys have indicated, the answer to your question depends on whether on not the property has been distributed out of the trust to the beneficiaries. There are many ways in which the legal mechanics of the sale can be handled. You major concern will not be the legal aspects of the sale, but getting all of the beneficiaries to agree on what to do. The interplay of trust law and real state law can be complicated. This should consult an experienced real estate lawyer in your area for help.

Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.

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Asker

Posted

Mr Deason, if the trust is distributed by deeds then, do you still think that trust law would be an issue?

Marshall C Deason Jr.

Marshall C Deason Jr.

Posted

The lawyer would have to look at the trust to make sure that the distributions were proper.

Posted

Assuming the trust has proper title to the property the easiest way would be to sell the property in the trusts name and distribute the proceeds to the trust. The trustee or trustees would then take the cost of sale out and could distribute the remaining funds in the appropriate proportion to the beneficiaries.

This system would be the easiest in my opinion. That way all current expenses could be accounted for and credited amongst all the beneficiaries equally. It would also be fairly easy to track contributions to the trust to maintain the house before it is sold.

Disclaimer: The foregoing answer does not constitute legal advice, is provided for informational and educational purposes only for persons interested in the subject matter. Each situation is fact specific and may be subject to state specific laws. Without a comprehensive consultation and review of all the facts and documents at issue it is impossible to evaluate a legal problem fully. This answer does not create an attorney-client relationship. No Tax Advice - Circular 230 Disclaimer - Any information in this comment is not intended to constitute a comprehensive and complete tax consideration analysis, and may not be used by the taxpayer to eliminate or reduce penalties by the IRS or any other governmental agency, nor for the purpose of promoting, marketing or making recommendations to other persons on any tax-related matters.

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Asker

Posted

Thank you Mr Wiley, if the deeds are distributed to the beneficiaries, the property would no longer be titled to the trust. So my question is as to this scenario--where the deeds have been distributed to the beneficiaries, meaning the trust is dissolved/terminated. In this scenario, what is best way to go about the sale of the real prop? thanks again

Matthew Aaron Wiley

Matthew Aaron Wiley

Posted

Well it becomes an accounting mess but much the same. Contact a Real Estate Lawyer. They will account for all the beneficiary contributions and distribute the proceeds to each beneficiary out of closing. It is not really a big deal just more people need to sign the deed/contract. As mentioned before you could use a Power of Attorney (so that one person can sign for all). Step 1. Call a Realtor and have the house listed. Step 2. Track your expenses Step 3. Get a lawyer to do the closing tell him you have x owners.

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