Probate Situation- Inherited Home. NEED HELP

9 Replies

Good afternoon BP. 

I am dealing with a homeowner who has inherited a home from his deceased father. The home has no mortgage on it but he has not paid the taxes in 3 years so the foreclosure process will begin in September.  We are trying to come to a deal on the purchase of the home but I need some help in figuring out the best route to take for his specific situation.

The home is currently in a trust. The gentlemen is the sole receiver on the trust but would like to get the deed transferred into his name. What is the best route to get the deed out of the trust and into the gentlemen's name?

Any advice will help. Thanks

Originally posted by @Daniel Sisto :

Good afternoon BP. 

I am dealing with a homeowner who has inherited a home from his deceased father. The home has no mortgage on it but he has not paid the taxes in 3 years so the foreclosure process will begin in September.  We are trying to come to a deal on the purchase of the home but I need some help in figuring out the best route to take for his specific situation.

The home is currently in a trust. The gentlemen is the sole receiver on the trust but would like to get the deed transferred into his name. What is the best route to get the deed out of the trust and into the gentlemen's name?

Any advice will help. Thanks

 Transferring title from the trust to the individuals name may be as simple as taking the trust document along with the death certificate and any other supporting documents to a title company to record a transfer. As a potential buyer, you'll want them to buy title insurance for this transfer.

If the property hasn't moved through the probate court, if the estate is subject to probate, then that might create delays in transferring title.

As for a possible transaction, you didn't give any details as to your proposed transaction so its nearly impossible to speculate what you have or haven't discussed with the potential seller. 

First thing you'll want to do is make sure he does indeed possess title, or have the inexplicable right to title (get that acknowledgment title is transferrable from your title company if not done prior to your transaction closing) before passing any money. 

Next, if you haven't already done so propose a seller carryback with the payment of the back taxes as the downpayment.

If not acceptable then have option #2, #3, #4 ready for him.

@Christopher Telles

Thanks for the response. I will be purchasing the home for 34,500 in cash and will be helping his pay some tickets and fix car for total of 1300 so add that on to the total. Just giving some up front money to help him out and get deal. 

House will resell for 135,000 low end to 150,000. But will put on market at that low 135,000 to get offers rolling in.

I looked over the documentation today and he is indeed the trustee to the property. 

Any more information to help give a better synopsis let me know. Thanks again

Originally posted by @Daniel Sisto :

@Christopher Telles

Thanks for the response. I will be purchasing the home for 34,500 in cash and will be helping his pay some tickets and fix car for total of 1300 so add that on to the total. Just giving some up front money to help him out and get deal. 

House will resell for 135,000 low end to 150,000. But will put on market at that low 135,000 to get offers rolling in.

I looked over the documentation today and he is indeed the trustee to the property. 

Any more information to help give a better synopsis let me know. Thanks again

 Dude, just get that deal done, and title in your name.

If you're stuck on a couple thousand bucks give it to him and move on to the process of marketing.

It's anecdotal so far, meaning that if you've researched title, you'll need a copy of the trust and review for language giving successor trustee certain powers.

Most trusts have provisions for the successor trustee to sell trust assets persist to the terms of the trust upon apron appointment. Appointment is typically established upon some event, such as death of grantor/settlor. A death certificate would normally satisfy title company along with the entire trust. 

@Rick H. so basically I need to read through the language of the trust to see if there are any provisions preventing the trustee from moving the deed into his name? When you say appointment is established upon a death of the grantor, that would be his father, correct?

Also do you know where this information is typically held in the trust, under what part of the table of context?

Thanks for your help Rick

Just read the black print. Do your job. Trusts have no standard format to rely on.

Some are short; some are 100+ pages. 

Maybe your get lucky.

@Rick H.

Thanks for the help. Just trying to familiarize myself with a situation I am unfamiliar with so I can handle properly. 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.