Probate, trusts, taxes and divorce
How to Sell a House Held in a Living Trust in the Sacramento Region
How a successor trustee sells a house held in a living trust in California, step by step, without a court case.
Can a house in a living trust be sold without going to court?
Usually, yes. When a house is held in a living trust, the trust owns it, not the person. The California Courts Self-Help Guide (checked October 22, 2026) describes a deed "in a trust's name" this way: the property is owned by a trust, not the individual. So when the person who made the trust dies, the house doesn't need a probate case to change hands. The successor trustee named in the trust steps in and handles it.
That's the big difference from probate. No court appointment, no hearing on the sale price and no court calendar to wait on. The trustee still has real duties, and the steps below cover them in order.
This is general information, not legal or tax advice. A trust attorney advises on your trust, and a CPA advises on taxes. Maggie B. Hopkins is a Certified Probate & Trust Specialist and a licensed real estate broker. Her work is the house and the sale.
How do you know if the house is actually in the trust?
Look at the recorded deed, not just the trust document. A trust only controls what was put into it. If the deed names someone "as trustee" of the trust, the house is in the trust.
Sometimes a trust was signed but the house was never deeded into it, or it was refinanced out and never put back. In that case the house may be in the person's own name and may need probate or another court process instead. Our probate timeline and cost guide covers that path.
Here's how to check:
- Find the most recent deed in the family papers, or ask a title company for a copy of the vesting.
- Compare the name on the deed to the exact name of the trust.
- If they don't match, or the deed is in the person's own name, call the trust attorney before doing anything else.
We can order a property profile through title so you see how the house is held before you plan the sale.
What does a successor trustee do first after a death?
The first weeks are about taking charge of the house and the paperwork. A practical order:
- Get several certified death certificates. Title, escrow and the county all ask for one.
- Read the trust closely. Find who the successor trustee is, whether co-trustees must act together, and what the trust says about the house.
- Secure the home. Change the locks if keys are out there, keep the utilities on, and keep up the insurance. Tell the insurance company the owner has died and ask what coverage a vacant home needs.
- Keep paying what keeps the house safe. Mortgage, property tax and HOA dues if there are any. Missed payments create problems that are hard to undo.
- Meet with a trust attorney. They'll guide the notice to heirs, the tax questions and whether to distribute or sell.
- Get a value. The value at the date of death matters for taxes later. Our guide to stepped-up basis explains why.
Our free Inherited Home Checklist puts these first 30 days on one page.
Who has to be notified when a trust becomes irrevocable?
California Probate Code section 16061.7 (checked October 22, 2026) requires the trustee to send a written notification when a revocable trust, or part of it, becomes irrevocable because the person who made it died. Here's what the section says, in plain words:
- Who gets it. Each beneficiary of the trust and each heir of the person who died. That includes heirs who aren't named in the trust.
- When. Within 60 days of the death. If there's a gap before a new trustee starts serving, the 60 days run from when the new trustee begins.
- What it says. Who made the trust and when it was signed, each trustee's name, address and phone number, where the trust is administered, and that the person can ask for a complete copy of the trust terms.
- The contest warning. The notice has to include a bold paragraph saying a person can't bring an action to contest the trust more than 120 days from the notice date, or 60 days after they receive a copy of the trust terms during that 120-day period, whichever is later.
The trust attorney usually prepares and serves this notice. The same section says a trust can't waive it. Some trustees choose to wait to close on the house until the contest window has passed, so ask your attorney how the timing fits your sale.
What is a certification of trust, and why does escrow ask for it?
A certification of trust is a short, signed statement that proves the trust exists and that you have the power to sell. Title companies and escrow ask for it so they don't need the whole trust.
California Probate Code section 18100.5 (checked October 22, 2026) sets the rules:
- It's a written declaration signed by all currently acting trustees and formally acknowledged, which means notarized.
- It states that the trust hasn't been revoked or changed in a way that makes the certification wrong.
- It can show the trust's name and date, the current trustees, the trustee's powers, how co-trustees sign, the trust's tax ID number and how title should be held.
- It doesn't have to show who inherits what. Someone dealing with the trustee can ask for the excerpts that show the trustee's authority, but the law doesn't require handing over the parts that say how the estate is divided.
The section also says a person who relies on the certification in good faith is protected. That's why title companies accept it. Your attorney or the title officer usually prepares it, often with a recorded affidavit about the death. Ask for it early, because escrow can't close without it.
Should the trustee sell the house or give it to the heirs?
The trust decides that first. Some trusts say to sell and divide the money. Others leave the house to one person, or let the trustee choose. Read that part with your attorney before you list.
When the trust lets you choose, it helps to lay the options side by side:
- Sell and split the proceeds. Simple to divide, and no one carries the house afterward. Our cost to sell guide shows what comes out of the price.
- Deed the house to one or more heirs. Useful when a child wants to live there. Co-owning siblings need a written plan for who pays the taxes, repairs and insurance.
- One heir buys out the others. The house goes to one person and the others get cash, often through a loan. Maggie is a mortgage broker and can shop that loan across a network of approved lenders, or you can use any lender you like.
- Keep it as a rental. Some families do this for a while. It brings landlord work and decisions every heir has to agree on.
When siblings disagree, a clear price range from recent sales usually helps more than anything else. We give every heir the same numbers. Get a starting point with a home value check.
How does Prop 19 affect a child who keeps a parent's house?
California's Proposition 19 decides whether the property tax resets when a parent's home passes to a child. The State Board of Equalization explains it on its Prop 19 page (fact sheet as of June 2025, checked October 22, 2026):
- The home has to have been the parent's principal residence and become the child's principal residence. A rental doesn't qualify.
- Not every child has to move in, but at least one must live there and file for the homeowners' exemption. The BOE says to file it within 1 year of the death or transfer. Filing later applies the exclusion only going forward.
- The claim form, BOE-19-P, goes to the county assessor within 3 years of the death or transfer, or before the house is transferred to someone else, whichever is earlier.
- There's a value limit. The child keeps the parent's factored base value up to that value plus an amount the BOE lists as $1,044,586 for transfers from February 16, 2025 through February 15, 2027. Market value above that limit is added to the taxable value.
A worked example in words: say the parent's factored base value is $200,000. The limit is $200,000 plus $1,044,586, or $1,244,586. If the house is worth $900,000, it's under the limit, so the child keeps the $200,000 base. If it's worth $1,400,000, the extra $155,414 is added, and the new taxable value is $355,414.
If the child later moves out, the BOE says the home is reassessed. Our Prop 19 page and property tax calculator help you see the difference. The county assessor decides eligibility.
How does a trust sale work through title and escrow?
Once the trustee decides to sell, the sale looks a lot like any other. A few pieces are different:
- The trustee signs everything. The listing agreement, the disclosures and the purchase contract are signed by the trustee, as trustee. If co-trustees must act together, all of them sign.
- Title reviews the trust paperwork. Expect a request for the certification of trust, the death certificate and sometimes an affidavit of the death of the trustee.
- Disclosures still matter. A trustee may never have lived in the house, so you disclose what you know. Our seller disclosures guide covers the forms, and your attorney confirms which apply to a trust sale.
- Proceeds go to the trust. The money is paid to the trust, and the trustee distributes it under the trust and the attorney's guidance.
Many inherited homes need some work. Some families sell as-is. Others do a few repairs first through our turnkey home prep. If you're handling this from another city, our guide to selling a parent's home from out of town covers how we manage it for you, and our estate sale and cleanout guide covers the belongings.
What's the difference between a trust sale and a probate sale?
Both end with the house sold and the money passed to the heirs. The road is different.
- Who signs. In a trust, the successor trustee named in the trust. In probate, the person the court appoints.
- Court involvement. A trust sale usually has none. A probate sale may need a court hearing to confirm the price, depending on the authority the court granted.
- Public record. A probate case is filed with the court. A trust is generally handled privately, apart from what gets recorded.
- Notice. Trusts have the section 16061.7 notification. Probate has its own notices and timelines.
Our in-depth page on selling an inherited home through probate or a trust walks through both, step by step. Maggie has also written about wills vs trusts in Sacramento, the parts of a California trust and selling an inherited house in a trust.
How do you get started selling a house held in a trust?
Start with three things: a copy of the trust, the most recent deed and a call with your trust attorney. Then bring us in. We'll walk the house with you, or for you if you're out of town, and give you a price range based on recent sales nearby. We'll lay out the prep, the timeline and what every heir can expect to net.
Send us a note or call Maggie's cell at (916) 549-3131. Download the free Inherited Home Checklist to keep the first steps in one place.
Frequently Asked Questions
Does a house in a living trust go through probate in California?
Usually not, if the house was actually deeded into the trust. The successor trustee handles it without a court case. If the deed is still in the person's own name, the house may need probate or another court process.
How long does a successor trustee have to notify the heirs?
California Probate Code section 16061.7 says the notification goes out within 60 days of the death. It goes to each beneficiary and each heir, and your trust attorney usually prepares it.
How long do heirs have to contest a trust?
Under section 16061.7, the notice must warn that a contest can't be brought more than 120 days from the notice date, or 60 days after receiving a copy of the trust terms during that period, whichever is later. Ask your attorney how that fits your sale date.
Does the title company need the whole trust?
Usually not. California Probate Code section 18100.5 lets the trustee give a notarized certification of trust instead. It proves the trust exists and that the trustee can sell, without showing who inherits what.
Can the successor trustee sell the house before the heirs agree?
It depends on what the trust allows and the duties a trustee owes the beneficiaries. Many trusts give the trustee the power to sell. Your trust attorney tells you what yours says and how to keep the heirs informed.
Will the property tax go up if I keep my parent's house?
It may. Under Prop 19, a child who makes the home their principal residence can keep the parent's base value up to a limit. The BOE lists the added amount as $1,044,586 for transfers from February 16, 2025 through February 15, 2027. The county assessor decides.
Do I owe capital gains tax when I sell a parent's house from a trust?
Often the gain is small, because inherited property generally gets a new basis equal to its value at the date of death. Whether that applies depends on the type of trust, so ask your CPA. Our stepped-up basis guide explains the idea.
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