When we get a call from a potential seller, the first thing we do is pull a “property profile.” This document, which is public record, tells us a lot about the home, including when it was built, square footage, number of bedrooms and bathrooms – a lot of the information we need to run comps to price the property.
The property profile also tells us whose name is on title and it always surprises us when we see the home is in the name of the homeowner(s) and not in a trust. Why is that important? We’re not attorneys so we can’t give you legal advice. We asked trust and estates attorney, Grant Pederson, to explain why your home should be titled in a trust.
“When you put your property in a trust, you control how the property will be managed or distributed after your incapacity or death,” Grant says. “Further, you decide who will handle management of the property, whether it’s sold or held for your beneficiaries.
“If your property is not in a trust, you’ll likely have to go through probate, which means your heirs will have to go to court and the court will decide how to handle those assets. In California, the probate process can take between nine months to a year and can cost as much as 4 to 6 percent of the gross value of the property. For example, to probate a $1 million home, even if it’s encumbered by a $600,000 loan, could cost about $50,000.
“Bottom line, probate takes time and costs money. Owning your property inside of a trust gives you control and will greatly reduce both the time and cost to handle a loved one’s estate,” Grant says.
What Grant didn’t say, but we will, is that it’s a lot more cost effective to have an attorney put your home in a trust now, while you can. “There are a lot of great attorneys in town,” Grant says, and he’s right. The advice we can give is to call one of them or call Grant and his team of associates at 805.495.3444.
If you’re unsure of how your property is held, please let us know and we’d be more than happy to pull your property profile (no charge, of course!).
Let’s talk our favorite language! Real estate!
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