Understanding Trust Sales: A Guide for Successor Trustees in California
When managing the responsibilities left behind after the death of a trustor, successor trustees in California often face the significant task of selling real estate that is held in a trust. This article will explore the nuances of real estate trust sales, how they differ from probate sales, and the specific legal requirements, including disclosures and notices that trustees must manage.

Difference Between Trust and Probate Sales
Trust Sales and Probate Sales are two common methods for handling the real estate of a deceased person, but they operate under different legal frameworks
Trust Sales

Less Court Involvement: Trust sales typically do not require court confirmation, making them a quicker and less public process than probate sales.

Managed by Trustees: The successor trustee manages the sale as per the instructions laid out in the trust document, without the need for court oversight (except under certain circumstances).
Probate Sales

Court Supervision Required: Probate sales often require court supervision or confirmation, especially if the estate’s executor has limited authority. This process can lead to public bidding, potentially increasing the final sale price but also complicating and lengthening the sale process.

Public Process: The details of probate sales, including the terms of the sale, become part of the public record, unlike most trust sales.

Disclosures in California Real Estate: The Exempt Seller
In California, real estate transactions typically come with stringent disclosure requirements aimed at providing the buyer with as much information as possible about the property. However, when it comes to trust sales, the trustee may be considered an Exempt Seller.
Exempt Seller Status: Successor trustees are often exempt from certain disclosure requirements, such as the Transfer Disclosure Statement (TDS), because they may not be aware of the property’s details and defects. This exemption does not absolve them of all disclosure responsibilities; known material facts and defects must still be disclosed.
Legal Notices in Trust Sales
Before executing a trust sale, successor trustees must adhere to specific notice requirements:
Notice of Proposed Action
- Informing Beneficiaries: Trustees are required to send out a Notice of Proposed Action to beneficiaries and heirs if the trust document does not waive this requirement. This notice outlines the terms of the proposed sale and provides a period during which beneficiaries can object.
- Purpose: The purpose is to ensure transparency in the trust administration process and to give beneficiaries an opportunity to be informed about significant decisions affecting the trust assets.

Final Thoughts
For successor trustees, understanding the legal landscape of trust sales is crucial for the efficient and lawful execution of their duties. While the process offers more privacy and speed compared to probate sales, it still requires careful attention to legal requirements and fiduciary duties. Successor trustees should consider working with professionals who specialize in real estate trust sales to ensure that all aspects of the sale are handled competently.
This guide aims to equip successor trustees with the knowledge needed to navigate these complex processes successfully. For those looking for expert assistance in managing a trust sale, connecting with a specialized real estate professional can provide the necessary support and guidance to fulfill your responsibilities effectively and honor the trustor’s wishes.
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