Part two in a series regarding death, assets and trusts, from a professional and personal experience point of view.
Mom’s desire upon her death for my brother and me? Co-executors. We work together in tandem, honoring her, her trust, what she would have wanted.
In preparing for sale of Mom’s estate (ok, it’s really a small cozy beach house) in lieu of signing a regular residential listing agreement, brother and I, as trustees, will sign a Trust Listing Agreement (Form TAL). Essentially, brother and I are managers of Mom’s trust, not sole owners of the house. Three parties are involved in the transaction: my bro and I, Mom’s trust and the broker.
I knew avoiding probate would prove positive, though now going through the experience of a trustee sale, more convinced than ever the magnitude of this gift Mom left. This is not to insinuate those going through probate are less than human simply because a trust wasn’t set up preceding death of a loved one. I am suggesting that one seriously consider writing a trust, as probate involves court proceedings, more time and added expense, whereupon a trust eliminates much of that. More cool info *here.
Along with the TLA, California Association or Realtors require a Trust Advisory (Form TA) This form is “intended to inform Buyer and Seller of their rights and obligations independent of those established by the contract between them.” In other words, for the seller, what’s required, exempt and other considerations based on the trust, whether revocable or irrevocable. For example, sale of a trust is exempt of smoke detectors: “The sale is exempt of the State requirements that, for single family residences, operable smoke detectors be in place and that a written statement of compliance be provided to buyer.”
Here’s the dealio: trust or not, exempt or not, I’m installing smoke detectors. And I’m gonna make sure ALL disclosures are provided to Buyer. Better for Seller, better for Buyer. Just makes good sense.
Going through this exercise of a trustee sale, I must admit I’m not prepared for my own kids. Granted, my ex and I were on the ball, having written a trust years ago. After the sale of Mom’s house, I’m not certain where or when I’ll purchase another property. Guaranteed, with an asset such as a home, I will leave my own trust for my children, pass along the gift my Mom gave me. What I’ve learned thus far, as a trustee and a real estate agent, prepping for the sale of any home, dealing with assets, today and tomorrow is imperative. The rewards of doing research, homework, thinking ahead and working with an advisor or two can eliminate a great deal and add an extra dose of peace in one’s life here on earth.
*For the record, I am not an attorney nor do I play one on TV. Please refer to your attorney for professional consultation.
*For those who need references, please look for that page coming soon to An Uncommon Agent near you soon. Thanks.