If a home is in a trust and is sold prior to the trustees death, where do the proceeds of the sale of the home go?

Asked over 1 year ago - Palm Beach, FL

There are 3 beneficiaries (we believe) that are in the trust.
One person holds a durable power of attorney
POA refuses to show copy of trust to the two remaining beneficiaries

Attorney answers (4)

  1. Joseph Franklin Pippen Jr.

    Pro

    Contributor Level 20

    5

    Lawyers agree

    Answered . Is the grantor also the trustee? If so-can do whatever he wants with proceeds.
    If someone else is acting trustee-the proceeds would go in the trust.

    The answer given does not imply that an attorney-client relationship has been established and your best course of... more
  2. Carol Anne Johnson

    Contributor Level 18

    4

    Lawyers agree

    Answered . The POA has nothing to do with the trust unless they are also the trustee. The property will most likely remain in the trust, unless the trust is revocable and the settlor is still alive - in which case, they can pretty much do what they want. Again, if the trust is a testamentary trust and the settlor is still alive, you don't really have a right to see the trust. You will get a full accounting when the trust takes effect and you are receiving distributions.

    Carol Johnson Law Firm, P.A. : (727) 647-6645 : carol@caroljohnsonlaw.com : Wills, Trusts, Real Property, Probate,... more
  3. M Kay Lewis

    Contributor Level 7

    2

    Lawyers agree

    Answered . Generally any sale of property by a trust would have the proceeds payable to the trust. If it is an irrevocable trust, then they must be paid into the trust. If it is a grantor or other revocable trust, then the grantor has the power to withdraw all the trust assets and the proceeds of the sale of any trust assets. If the trustee of a revocable/grantor trust is NOT the grantor/creator of the trust, the the death of this trustee makes no difference on where proceeds go, the grantor still controls it. Until the trust becomes irrevocable, if it isn't already, then the grantor controls who get what information and also who the beneficiaries are or will be as the grantor can amend it at any time as long as they are mentally competent. Therefore, unless the grantor has died, or the trust otherwise became irrevocable making the the three beneficiaries actual beneficiaries not subject to change, then any contingently named beneficiaries have no claim to money, assets, or even information or a copy of the trust.
    One last thing you might consider doing is to contact the attorney that represented the creator of the trust. Express you interest in knowing if you have a right to a copy of the trust, and ask if you have any right to the assets or income of the trust. If you know who the attorney is, then you can save a lot of time and resolve your inquiries fairly quickly with a phone call.

  4. James P. Frederick

    Contributor Level 20

    3

    Lawyers agree

    Answered . The proceeds would normally go to the trust, although I agree with Mr. Pippen, that if it is the Grantor selling the property, the proceeds can go wherever he/she wishes.

    James Frederick

    ***Please be sure to mark if you find the answer "helpful" or a "best" answer. Thank you! I hope this helps. ******... more

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