Navigating the Next Chapter: What to Know About Trusts and Inherited Homes
Inheriting a home is both a gift and a responsibility. Whether it’s a home that’s been in your family for generations or a recent addition to a trust, the decisions you make next are personal—and often emotional.
For many Ventura County families, real estate is a key part of a legacy. But that doesn’t always mean keeping the home is the best—or only—option. Understanding how a trust impacts your ownership, taxes, and selling process can help you make a confident, informed decision.
Let’s walk through what it means to keep (or sell) a family home that’s held in a trust.
What Is a Trust and Why Was the Home Placed in It?
A trust is a legal arrangement that helps manage assets, like real estate, according to a person’s wishes, often with the goal of avoiding probate, protecting beneficiaries, or reducing estate taxes.
If you’ve inherited a home held in a trust, it likely means the original owner wanted to ensure a smoother transfer of property without the delays or public process of probate.
But once the home is in your hands, you’ll need to decide what’s next.
Should You Keep It?
Holding onto a family home can provide emotional comfort, rental income, or future investment potential. Before deciding, consider:
- Sentimental value: Is this a home filled with memories and meaning?
- Location and use: Will you live in it, rent it out, or leave it vacant?
- Maintenance and upkeep: Are you ready to handle repairs, taxes, and insurance?
- Shared ownership: If multiple heirs are involved, is there a clear agreement on next steps?
Keeping the home may make sense if it fits your lifestyle and long-term goals, but it’s important to understand the financial implications too.
Should You Sell It?
Selling the inherited home might be the right move if:
- You don’t plan to use or occupy the property
- Maintaining it is financially or logistically challenging
- You’d prefer to liquidate the asset and use the proceeds for other goals
Good to know: If you sell shortly after inheriting, you’ll likely benefit from a “step-up in basis,” which resets the home’s value to its fair market value at the time of death. This can significantly reduce (or eliminate) capital gains taxes if you sell quickly.
I always recommend talking to a tax advisor and estate attorney before making a decision, but I’m happy to help you understand how the real estate piece fits into that bigger picture.
What If the Home Is Still in the Trust?
Before you can sell or transfer title, the trustee (often a family member or executor) must ensure:
- The trust allows for the sale or transfer
- All beneficiaries agree (if required)
- Necessary paperwork is prepared, including title documentation
- Any debts tied to the property are addressed
Working with a real estate professional who understands trust sales is key. These transactions have unique steps, but they’re absolutely manageable with the right support.
What About Taxes and Timing?
Here are a few important things to keep in mind:
- Property taxes: In California, Prop 19 has changed how property tax bases are transferred between parents and children. Some exemptions still apply, but the rules are narrower than they used to be.
- Capital gains: As mentioned, the step-up in basis can help reduce your tax burden, but the timing of the sale matters.
- Title transfer: If the trust hasn’t been dissolved, the home may still be titled in the trust’s name—this must be addressed before listing or closing a sale.
A Trustworthy Process Deserves Trusted Guidance
Selling or deciding what to do with a family home after loss is never just a financial transaction—it’s a chapter filled with memories, questions, and sometimes even family dynamics.
As your real estate advisor, I’m here to help guide you through the process with care, clarity, and confidence.
Whether you’re ready to sell, thinking about keeping the home, or simply exploring your options, let’s sit down and talk it through. This isn’t just about real estate—it’s about honoring the past while preparing for the future.
Let’s create a plan that fits your family, your needs, and your next chapter.
