Can You Sell a Home in a Revocable Living Trust?

by | Feb 5, 2025 | Estate Planning, Real Estate |

A Revocable Living Trust offers many advantages in estate planning, including avoiding probate and simplifying asset distribution. But what happens when you want to sell a home that’s already in your RLT? This blog will explain how you can sell a home in an Revocable Living Trust and what steps you need to take to do so smoothly.

Can You Sell a Home in an Revocable Living Trust?
Yes, you can sell a home that is in a Revocable Living Trust. Because the trust is “revocable,” the trustee (usually you) maintains full control over the assets in the trust, including the ability to sell, buy, or transfer property. The trust is flexible and allows you to manage your assets just as you would if the property were owned outright.

Steps to Sell a Home in an Revocable Living Trust:

  1. Review the Trust Documents
    The first step is to review the terms of your trust. Ensure that the trust grants the authority to sell trust property. This is typically included in standard Revocable Living Trusts, but it’s important to verify.
  2. Work with the Trustee
    Since you are likely the trustee of your Revocable Living Trust, you can sign the necessary documents for the sale. If you’ve named a successor trustee, they may also need to be involved, depending on how your trust is structured.
  3. Prepare the Deed
    When selling, you will need to prepare a deed transferring the property from the trust to the buyer. As the trustee, you have the authority to sign the deed on behalf of the trust.
  4. Handle Tax Considerations
    Selling a home in an Revocable Living Trust doesn’t change your tax obligations. You will still need to report the sale on your personal tax return, just as if you were selling the home personally.
  5. Distribute the Proceeds
    The proceeds from the sale can be deposited back into the trust or distributed according to the terms of the trust.

Selling a home in an Revocable Living Trust is similar to selling a home you own personally. The flexibility of a Revocable Living Trust allows you to manage and transfer assets as needed.

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