Title & Escrow in Trust and Probate Transactions

When a property is held in a trust or is part of a probate estate, the title and escrow process involves additional steps and legal requirements that don't apply to standard residential transactions.

In a trust sale, the trustee sells the property on behalf of the trust. The title company must verify the trust document, confirm the trustee's authority to sell, and ensure the sale complies with the terms of the trust. The preliminary title report will reflect the trust as the vesting owner rather than an individual. Requirements include: a full copy of the trust and any amendments, a certification that the copies are complete and true, and the names of the present trustees. The trust document will be examined for powers granted to the trustee — including the power to sell, borrow, and encumber real property. If there is more than one trustee, the trust must specifically provide for fewer than all to sign.

Upon the death of one trustee/trustor, a certified death certificate, an affidavit of death of trustee, and a full copy of the trust with amendments and trust certification completed by the current trustees are required. The trust agreement will indicate who is authorized to sign after a death. It is important to note that a trust itself cannot hold title — the trustee holds property on behalf of the trust. Title would be worded: 'John Doe and Mary Doe, as Trustees of the Doe Family Trust, under declaration of trust deed dated January 1, 2016.'

In a probate sale, the property is sold as part of the estate of a deceased person. The will must be admitted to probate and the estate must be formally administered. The five purposes of estate administration are: (1) determine that the decedent is dead, (2) establish validity of the will, (3) identify heirs and devisees, (4) settle creditor claims, and (5) distribute property. The steps include filing a petition, court hearing, issuance of Letters of Administration, creditor notice, inventory and appraisal, tax returns, final accounting, decree of distribution, and discharge of the personal representative.

California probate sales may require court confirmation, which adds time and procedural requirements. Property can be sold during probate either at private sale (executor negotiates with a buyer) or at public auction. The personal representative (executor or administrator) must have legal authority granted by the probate court. An 'executor' carries out directions in a will; an 'administrator' is appointed when someone dies intestate (without a will).

Team Goeglein has extensive experience with trust and probate transactions across the South Bay and Westside LA. Matt Goeglein and Xavier de la Piedra IV work closely with trust and estate attorneys to ensure all title requirements are met and closings proceed smoothly.