What To Do With The Proceeds From The Sale Of House In A Trust

What To Do With The Proceeds From The Sale Of House In A Trust

What do you do with the proceeds from the sale of a house in a trust? 

This article outlines how to handle the money from the sale. 

Keep scrolling to learn more.

The Hive Law Has Been Featured In

Get A FREE Consultation!

We run out of free consultations every month. Sign up to make sure you get your free consultation. (Free $350 value.)

What To Do With The Proceeds From The Sale Of House In A Trust

After the sale closes, the trust receives the net proceeds. 

If there isn’t already a trust bank account, the trustee opens one. 

The trustee then deposits the net proceeds into this account.

When you’re selling a house that’s in a trust, you have to pay attention to:

  • the trust’s rules
  • the beneficiaries’ needs

Here’s how to handle the proceeds from the sale of a house in a trust:

  • Understand the Trust Terms: Begin by reviewing the trust document. This will detail how proceeds from the sale should be handled.
  • Deposit the Proceeds Correctly: Deposit the funds from the sale into the trust’s bank account, not a personal account.
  • Pay Off Any Outstanding Debts: If the house had any mortgages, liens, or other outstanding debts, settle those using the proceeds.
  • Distribute to Beneficiaries: If the trust instructs you to distribute the proceeds to beneficiaries, ensure you do so as specified.
  • Reinvest the Money: The trust may dictate that the funds be reinvested. If so, choose investments that align with the trust’s guidelines and objectives.
  • Maintain Detailed Records: Keep meticulous records of the sale, the amount received, any expenses or debts paid, and distributions made to beneficiaries. This ensures transparency and can help with any future questions or audits.
  • Pay Necessary Taxes: Report the sale of the house on the trust’s tax return. Pay any capital gains tax or other applicable taxes.
  • Communicate with Beneficiaries: Keep beneficiaries informed about the sale, the amount of proceeds, and any subsequent decisions or actions related to the money.

Read More: How To Put House In Trust With Mortgage

Get Help Managing Your Trust

If you want help from a trust law firm, fill out the form below. 

At The Hive Law, we understand the importance of:

  • protecting your hard-earned assets 
  • ensuring your family’s future
  • not losing everything to creditors and lawsuits
  • properly (and legally) distributing assets 

We only accommodate a limited number of clients each month.

So don’t miss your opportunity to work with our trust fund lawyers.

Benefits of our trust services:

  • Tailored solutions to fit your unique needs and goals
  • Expert guidance in navigating complex tax and legal matters
  • Preservation of your wealth for future generations
  • Streamlined asset distribution according to your wishes

Avoid the pitfalls of inadequate estate planning strategies:

  • Creditors seizing your assets
  • Lawsuits jeopardizing your family’s financial security
  • Family disputes over inheritance
  • Costly and time-consuming probate processes

Talk soon.

Get A FREE Consultation!

We run out of free consultations every month. Sign up to make sure you get your free consultation. (Free $350 value.)

Share This Post With Someone Who Needs To See It