Why a trust changes everything
A living trust is a legal arrangement the owner set up during their lifetime to hold property. If the house was transferred into the trust — the deed will show the trust as the owner — then when the owner dies the house usually avoids probate entirely. There's no court case, no court-appointed executor, and no statutory probate fees.
Instead, the person the trust names as successor trustee steps in to manage the trust's property. If that's you, you have real authority — and real responsibilities.
The successor trustee's steps
- Get the trust document and the death certificate. Read the trust carefully, including any amendments; it's your instruction manual.
- Record an "Affidavit – Death of Trustee" (as the form is commonly called) with the County Recorder, along with a certified death certificate, to show your authority as successor. Title companies will look for this before any sale.
- Get a tax ID number for the trust if it becomes irrevocable (can no longer be changed) at the death. A tax professional can tell you whether that applies.
- Send the required notice to beneficiaries and heirs under Probate Code section 16061.7 within 60 days. Beneficiaries then have 120 days from the notice to contest the trust.
- Secure, insure and maintain the house — locks, utilities, the right insurance for a vacant home, and basic upkeep. (See the first 30 days.)
- Get a date-of-death appraisal showing what the house was worth on the day the owner died. That value matters for taxes later.
- Sell or distribute the house according to the trust's instructions.
Selling a house held in a trust
Here's the biggest practical difference from probate: no court confirmation is needed to sell trust property. There's no hearing, no courtroom overbidding, and no waiting on a judge's calendar, so trust sales usually run like normal home sales — listing, showings, offers, escrow.
That freedom comes with duties. The trustee must act prudently (for example, price the house based on real market evidence and expose it to buyers rather than accepting the first lowball offer), keep beneficiaries reasonably informed about the plan and the sale, and account to them — showing what came in, what was paid out, and what's left. Clear communication is the trustee's best protection.
Common mistakes to avoid
One sibling moves in rent-free
It often starts informally: someone was the caregiver, or needs a place to stay. Without a written agreement, it quickly becomes a source of resentment and delay. If a beneficiary is going to live in the house, agree in writing on rent (or not), who pays expenses, and a timeline.
Mixing trust money with personal money
Open a separate account for the trust. Paying trust bills from your personal account — or depositing sale proceeds into it — makes accounting messy and can expose you to claims.
Selling before the notice period without advice
Selling the house before the 120-day contest window has run can create problems if someone challenges the trust. It's sometimes done, but only with a trust attorney's guidance.
When the trust doesn't cover the house
Sometimes the owner created a trust but never actually deeded the house into it. If the deed still shows the person's name alone, the house may need to go through probate or a simpler court process. See small estates and the $750,000 home rule, and ask a trust attorney about your options.