The Paperwork That Typically Comes Up and Why I Like to Start Early

One of the questions I hear from longtime homeowners is:

“Our house is in a trust. Does that make selling it complicated?”

Usually that question comes with a little bit of worry behind it.

Maybe the trust was created fifteen or twenty years ago.

Maybe one spouse handled most of the paperwork.

Maybe that spouse has passed away.

Maybe an adult child is now helping sort through everything.

And now you are looking at a binder full of legal documents wondering which page anyone actually needs.

I understand why it feels like a lot.

But the first thing I want homeowners to know is this:

A home being held in a trust does not automatically mean the sale is going to be difficult.

It simply means there are a few things we want to understand before we get too far into the process.

First, I Want to Know How the Home Is Actually Titled

Before I start worrying about what paperwork we might need, I want to know what the public record says.

Is the home currently titled in the trust?

Is it still titled in the homeowners’ individual names?

Did the trust change?

Has a spouse passed away?

Has a successor trustee stepped in?

Those details matter because the person who can legally sign a purchase agreement or deed may be different from the person who has always handled the home.

This is one reason I like getting the title company involved early.

I would rather figure out the answer while we are preparing the house than three days before closing.

The Certificate of Trust Often Comes Up

In Minnesota, one document that commonly matters is a Certificate of Trust.

Minnesota law allows a Certificate of Trust to show important information such as the name of the trust, the acting trustees, how many trustees need to act, and whether those trustees have authority to sell or transfer real property. It can be used in a real estate transaction without necessarily recording or providing every provision of the full trust agreement.

That can make things simpler.

Instead of handing over an entire estate plan, the certificate can provide the information needed to establish that the trust exists and that the correct person has authority to act.

Of course, every trust and title situation is different.

The title company or attorney will tell us exactly what they need.

Sometimes an Affidavit of Trustee Is Needed Too

Minnesota law also provides for an Affidavit of Trustee in real property transactions.

Among other things, that affidavit can support that the trust is valid, that the acting trustee has the appropriate authority, and that the required trustees have signed the conveyance.

Again, this is not something I expect a homeowner to figure out by themselves.

I want the title company and, when appropriate, the estate planning attorney handling those pieces.

My role is recognizing early that they may be needed.

What If One of the Trustees Has Passed Away?

This is where I see families get nervous.

A husband and wife created the trust together.

Both were trustees.

One spouse has now passed.

Can the surviving spouse sell?

Maybe.

But I never want to assume.

We need to look at the trust documents and confirm who is authorized to act now.

Depending on the circumstances, the title company or attorney may need documentation showing the death and establishing the authority of the current or successor trustee.

This is exactly the kind of thing that is much easier to solve when nobody is under a closing deadline.

What If the Children Are Now Helping?

This comes up frequently with senior transitions.

A son or daughter may be helping organize the move.

They may be meeting contractors.

They may be communicating with me.

They may even have power of attorney.

But helping with the process does not automatically mean they have authority to sell the property.

That is why I always want to be very clear about roles.

Who owns the home?

Who is the trustee?

Who has authority to sign?

Who should receive communication?

Who is simply helping Mom or Dad stay organized?

Those are different jobs.

Getting clear on them early protects everyone.

The Trust Is Not the Same as the Will

This is another area that can create confusion.

Families may have a trust, a will, a power of attorney, healthcare documents, and several amendments sitting together in one binder.

They are not interchangeable.

Which document matters depends on how the home is titled and what has happened since the estate plan was created.

That is why I am very careful not to tell someone:

“Oh, you have a trust, so you are all set.”

Maybe they are.

Maybe something needs to be updated.

That answer belongs with the appropriate attorney and title professional.

Do Not Forget About Taxes

Selling the property and understanding the tax consequences of selling it are two different things.

If the property has been owned for decades, inherited, transferred after a spouse’s death, used as a rental, or held in a trust with unusual circumstances, I want a CPA or tax professional involved before anyone makes assumptions about capital gains or basis.

The Realtor can help determine what the property may sell for.

The tax professional helps explain what that sale could mean financially.

Those conversations belong together.

The Paperwork Usually Feels Harder Than It Is

This may be the biggest thing I want homeowners to know.

When someone says:

“We need the trust paperwork.”

your mind can immediately go to:

Where is it?

Do I have the right version?

What if something is missing?

What if my attorney retired?

What if my husband handled all of this?

What if the kids need to sign?

Those are understandable questions.

But we do not have to answer all of them at once.

Start with what you have.

Find the trust.

Find any amendments.

Identify the current trustee.

Let the title company review the title.

Bring the attorney in if something needs clarification.

One step at a time.

Why I Like to Start Before the House Is Listed

This is the real reason I am sharing all of this.

If you know the home is in a trust and you are considering selling in the next six months, we can start figuring this out now.

You do not have to wait until you are ready for a sign in the yard.

We can confirm how the property is titled.

We can identify who should be involved.

We can ask the title company what they expect to need.

You can locate the trust documents.

And if something needs attention from an attorney, there is time to handle it calmly.

That is always my preference.

Because selling a longtime home is already emotional enough.

The paperwork should not be the thing that makes it harder.

A trust does not have to make a sale scary.

It just means we want the right documents, the right people, and enough time to get everything in order.

This article is for general educational purposes and is not legal or tax advice. Trust documents and circumstances vary, so an attorney, title professional, or tax advisor should review your specific situation.