Many Colorado homeowners put their house in a living trust so their family can avoid probate. When the owner passes away, a successor trustee usually takes over and can sell the home without going to court. The process is often faster than probate, but there are still important steps. Here’s how selling a house in a trust works in Colorado.
Please note: I’m a real estate broker, not an attorney. Review the trust document and your situation with a Colorado trust and estate attorney.
Who can sell the house?
The trust document names the successor trustee and spells out their powers. In most living trusts, the successor trustee can sell real estate without court approval and without the consent of every beneficiary, though keeping beneficiaries informed avoids misunderstandings.
What the title company will need
In Colorado, title companies typically require a recorded Statement of Authority for the trust, filed in the county where the property is located. It identifies the trust and the person authorized to sign on its behalf. The title company will also review the relevant parts of the trust agreement and, when a trustee has died, a death certificate and proof of the successor’s authority. If no Statement of Authority is on record, one is usually recorded at closing.
Steps to sell
- Confirm the home is actually in the trust. Check the deed. If the house was never transferred into the trust, it may still need to go through probate.
- Gather documents: the trust agreement, death certificate and any amendments.
- Secure and insure the home. Let the insurance company know if it’s vacant.
- Get a valuation as of the date of death. It matters for taxes and for beneficiaries. See our guide to date-of-death valuations.
- Decide how to sell: prepare and list the home, or sell as-is.
- Close at the title company, where the trustee signs a trustee’s deed and the proceeds go to the trust for distribution.
Common hiccups
- The house was never deeded into the trust
- Co-trustees who both need to sign but live in different places
- Beneficiaries who disagree about selling or price
- Out-of-date trust documents or missing amendments
Read our guide to selling with multiple heirs for tips on keeping the peace.
We work with trustees
We help successor trustees sell homes efficiently and keep beneficiaries informed. Call us at (720) 403-2940, request a free valuation, or get a cash offer if you need a quick, as-is sale.