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  1. #1
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    Aug 2018
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    Default Inheriting a Home Through a Trust

    My question involves estate proceedings in the state of: South Carolina

    Good morning. I’m hoping someone can answer a question for me.

    Consider the following situation:
    Person A creates a living trust and names Person B as successor trustee.
    Person A transfers title to his home from “Person A” to “The Person A Living Trust.”
    Person A dies, and the living trust becomes irrevocable.
    In order to take ownership of the home, Person B, the successor trustee, just needs appropriate identification and a copy of the trust document to transfer title from “The Person A Living Trust” to “Person B.”

    Is that how it works? It seems simple, but I don't want to make assumptions.

  2. #2
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    Default Re: Inheriting a Home Through a Trust

    Quote Quoting DocPit45
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    In order to take ownership of the home, Person B, the successor trustee, just needs appropriate identification and a copy of the trust document to transfer title from “The Person A Living Trust” to “Person B.”

    Is that how it works?
    Not entirely sure what you're asking or what your concern is. You mentioned that "Person A transfer[red] title to his home from [him/herself] to 'The Person A Living Trust.'" But that's not typically how it's done. More typically, Person A would executed and record a deed that transfers title from him/herself "to Person A, as Trustee of the Person A Living Trust." Is that what happened?

    In any event, there is no need for Person B to do anything unless the home is being sold or transferred to one or more beneficiaries. You referred to "appropriate identification," but I'm not sure to whom you contemplate Person B showing his/her identification (or why).

    If Person B is transferring title to one or more beneficiaries, nothing more than a deed is needed for that. If Person B is selling the home, then he/she will, at some point during the process, need to provide a copy of the trust instrument and probably a certified copy of Person A's death certificate.

    What is happening that has prompted you to ask this question, and who are you in the scenario?

  3. #3
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    Feb 2020
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    Default Re: Inheriting a Home Through a Trust

    Quote Quoting pg1067
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    Not entirely sure what you're asking or what your concern is.
    OMG!!! Not Again!!!

  4. #4
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    Default Re: Inheriting a Home Through a Trust

    Quote Quoting pg1067
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    Not entirely sure what you're asking or what your concern is. You mentioned that "Person A transfer[red] title to his home from [him/herself] to 'The Person A Living Trust.'" But that's not typically how it's done. More typically, Person A would executed and record a deed that transfers title from him/herself "to Person A, as Trustee of the Person A Living Trust." Is that what happened?

    In any event, there is no need for Person B to do anything unless the home is being sold or transferred to one or more beneficiaries. You referred to "appropriate identification," but I'm not sure to whom you contemplate Person B showing his/her identification (or why).

    If Person B is transferring title to one or more beneficiaries, nothing more than a deed is needed for that. If Person B is selling the home, then he/she will, at some point during the process, need to provide a copy of the trust instrument and probably a certified copy of Person A's death certificate.

    What is happening that has prompted you to ask this question, and who are you in the scenario?
    I have to say that it was pretty clear what the OP was asking about.

  5. #5
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    Default Re: Inheriting a Home Through a Trust

    Quote Quoting llworking
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    I have to say that it was pretty clear what the OP was asking about.
    No, you most certainly did not "have to say" any such pointless thing. It's awfully curious that you claim "that it was pretty clear what the OP was asking about" and yet, instead of making even a feeble attempt to offer the OP any sort of useful response, you chose to join Harold's troll club.

  6. #6
    Join Date
    Oct 2014
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    Default Re: Inheriting a Home Through a Trust

    Quote Quoting DocPit45
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    Is that how it works? It seems simple, but I don't want to make assumptions.
    You left out one important thing. Does the trust give the home to Person B? The trustee is simply the person who manages the trust and carries out the trust instructions. The beneficiaries of the trust are the ones who get distributions income/assets from the trust. A trustee is not necessarily a beneficiary of the trust.

    But assuming that Person B is the beneficiary of the home then in his role as trustee he would make out a deed conveying the property from the trust to himself as beneficiary. I recommend that Person B see a real estate attorney to get the deed done and recorded correctly. If Person B screws it up somehow he/she may create a cloud on the title that may be costly to fix later on.

  7. #7
    Join Date
    Aug 2018
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    8

    Default Re: Inheriting a Home Through a Trust

    In re-reading, I think my question was not entirely clear. I (John Smith, grantor and original trustee) transfer title of the house from "John Smith" to "The John Smith Living Trust." The trust document names Sally Jones as successor trustee. The trust document also explicitly names Sally Jones as beneficiary of the house. If I die, the title of the house still names "The John Smith Living Trust" as owner. My assumption is that Sally Jones must take some action to retitle the house in her own name. The answer to my question then is:
    But assuming that Person B is the beneficiary of the home then in his role as trustee he would make out a deed conveying the property from the trust to himself as beneficiary. I recommend that Person B see a real estate attorney to get the deed done and recorded correctly. If Person B screws it up somehow he/she may create a cloud on the title that may be costly to fix later on. Correct?

  8. #8
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    Default Re: Inheriting a Home Through a Trust

    Quote Quoting DocPit45
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    I (John Smith, grantor and original trustee) transfer title of the house from "John Smith" to "The John Smith Living Trust."
    As noted previously, this is not how it's typically done. Rather, it's typically done like this: "John Smith, a single man, grants the property described below to John Smith, as Trustee of The John Smith Living Trust." It doesn't entirely matter for the purpose of your inquiry, but you may want to check with a local trustee to confirm that everything was done correctly.


    Quote Quoting DocPit45
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    The trust document names Sally Jones as successor trustee. The trust document also explicitly names Sally Jones as beneficiary of the house. If I die, the title of the house still names "The John Smith Living Trust" as owner. My assumption is that Sally Jones must take some action to retitle the house in her own name.
    If you die? Are you supposing it's possible you might not die?

    Anyway, yes, if the trust provides that, when you die, the successor trustee should convey title to the house to Sally, she will need to execute and file/record a deed to that effect.


    Quote Quoting DocPit45
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    But assuming that Person B is the beneficiary of the home then in his role as trustee he would make out a deed conveying the property from the trust to himself as beneficiary. I recommend that Person B see a real estate attorney to get the deed done and recorded correctly. If Person B screws it up somehow he/she may create a cloud on the title that may be costly to fix later on. Correct?
    I agree with all of that.

  9. #9
    Join Date
    Aug 2018
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    8

    Default Re: Inheriting a Home Through a Trust

    Quote Quoting pg1067
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    Not entirely sure what you're asking or what your concern is. You mentioned that "Person A transfer[red] title to his home from [him/herself] to 'The Person A Living Trust.'" But that's not typically how it's done. More typically, Person A would executed and record a deed that transfers title from him/herself "to Person A, as Trustee of the Person A Living Trust." Is that what happened?

    In any event, there is no need for Person B to do anything unless the home is being sold or transferred to one or more beneficiaries. You referred to "appropriate identification," but I'm not sure to whom you contemplate Person B showing his/her identification (or why).

    If Person B is transferring title to one or more beneficiaries, nothing more than a deed is needed for that. If Person B is selling the home, then he/she will, at some point during the process, need to provide a copy of the trust instrument and probably a certified copy of Person A's death certificate.

    What is happening that has prompted you to ask this question, and who are you in the scenario?
    I'm Person A. I'm asking the question for two reasons: (1) I'm using a Nolo template to create the Living Trust. I will have it reviewed by an attorney. However, I still like to have what I'm doing critiqued in this forum so that, prior to talking to an attorney, I understand the procedure as well as I can. (2) I want to ensure that taking possession of the assets they inherit is as quick and easy as possible for my heirs. This forum really does provide a learning opportunity. Many thanks for your responses.

  10. #10
    Join Date
    Mar 2013
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    18,309

    Default Re: Inheriting a Home Through a Trust

    Quote Quoting DocPit45
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    I'm Person A. I'm asking the question for two reasons: (1) I'm using a Nolo template to create the Living Trust. I will have it reviewed by an attorney. However, I still like to have what I'm doing critiqued in this forum so that, prior to talking to an attorney, I understand the procedure as well as I can. (2) I want to ensure that taking possession of the assets they inherit is as quick and easy as possible for my heirs.
    The purpose of an RLT is to avoid probate and simplify the disposition of assets. There isn't anything for us to "critique" because we can't look at the documents you are creating. Whether you are getting it right is something to ask the lawyer who reviews those documents in their entirety.

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