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Selling a Home Held in a Trust

A leather document portfolio with a blank tab on a kitchen table beside a house key and a cup of coffee, a backyard garden visible through the window

If the home was titled in a living trust when the owner died, the successor trustee, the person the trust names to take over, can usually sell it without going to probate court. California law says trust administration is intended to proceed expeditiously and free of judicial intervention, under Probate Code 17209, and a trustee has the power to dispose of property at public or private sale, under Probate Code 16226.

That means no letters, no probate referee appraisal, no publication, no 90% minimum and no overbid. A trust sale is an ordinary sale with extra paperwork up front.

The step trustees most often skip is the notice to beneficiaries and heirs, which has a deadline.

Key Facts

  • A trustee has the power to sell at public or private sale, unless the trust says otherwise. Probate Code 16226
  • The trustee must serve notice within 60 days of a revocable trust becoming irrevocable at the settlor’s death. Probate Code 16061.7
  • That notice must warn of a 120-day limit on contesting the trust.
  • Medi-Cal estate recovery reaches only probate assets for deaths on or after January 1, 2017, so a home passing by trust sits outside it. California DHCS

Can a Successor Trustee Sell Without Court Approval?

In most cases, yes, under the powers in the trust and in the Probate Code. The trust document controls, so read it first. It can restrict the power of sale, require a co-trustee to sign, or direct that the house go to a named beneficiary. A trustee also owes duties to the beneficiaries, and a written valuation with the comparable sales attached is the cheapest protection a trustee can buy.

What Does the Trustee Have to Send First?

The notification under Probate Code 16061.7. When a revocable trust becomes irrevocable because the settlor died, or the trustee of an irrevocable trust changes, the trustee must serve notice within 60 days.

It must warn that no one may contest the trust more than 120 days after service, or 60 days after a copy of the trust terms is delivered in that period, whichever is later. Some trustees wait out that window before closing a sale and some do not. Ask the attorney handling the trust.

What Paperwork Does Escrow Need?

  • A certified copy of the death certificate.
  • The trust document, or a certification of trust, the short summary showing who the trustee is and what powers they hold.
  • Proof of the trustee’s identity, and any acceptance of trusteeship the trust requires.
  • A deed or affidavit clearing how title is vested, if the record still shows the original trustee.

Where a death affects recorded title, such as a joint tenancy, any person may record an affidavit with a description of the property and a certified copy of the death record, under Probate Code 210. Ask through the contact page for title and escrow introductions.

What Can Still Pull a Trust Sale Into Court?

A few things. A beneficiary contest over the trust terms or the trustee’s conduct can land in front of a judge, and so can a trust that limits the power of sale without beneficiary consent.

A house never transferred into the trust. This is the most common problem. If the deed still shows the person individually, the trust does not control that house, and the family may need probate instead. See what happens before probate.

Co-trustees who disagree. Two trustees who will not sign the same listing need an order.

What About Taxes on a Trust Home Sale?

Basis is the big question. Inherited property takes a basis equal to fair market value at the date of death, under IRC 1014(a), so a sale soon after death often produces little gain.

Gain on inherited property is reported as long-term however long it was held, per the IRS Form 8949 instructions, and the Franchise Tax Board taxes capital gains as ordinary income in California. Talk with a CPA before signing.

What Does the Sequence Look Like?

  1. Read the trust and confirm who the successor trustee is.
  2. Serve the Probate Code 16061.7 notification within 60 days.
  3. Confirm the house is actually titled in the trust.
  4. Get a written valuation and agree on a price range with the beneficiaries.
  5. Clean out, repair where it pays, and list. See preparing a probate home.
  6. Accept an offer and close through escrow.

Summary

  • A successor trustee can usually sell a California home with no court supervision.
  • The Probate Code 16061.7 notice is due within 60 days and carries a 120-day contest warning.
  • A house left out of the trust does not sell as a trust asset.
  • Inherited property takes a date-of-death basis under IRC 1014(a).

Next Steps

Talk with Bart: Book a free 15-minute call. I’ll listen to where you are in the process, look at the property, and tell you your options, including the ones that don’t involve hiring me.

Request a free probate home valuation: You’ll get a written price range within one business day.

Related Reading

About the Author

Bart Hubbard is a Realtor with HomeSmart ICARE Realty (DRE #01815497) and a C.A.R. Certified Probate and Trust Specialist who helps families across the greater Sacramento area sell inherited, probate and trust homes. He works alongside probate attorneys, fiduciaries and local vendors to handle pricing, cleanouts, repairs and court-confirmation sales, so executors can focus on their families. More about Bart is on his bio page.

This page is general information, not legal or tax advice. Probate and tax rules depend on your facts. Talk with a California probate attorney or CPA before acting. Figures current as of October 2026.