Expert: Dick Dennis - 7/17/2010

Question
Dick,

My mom lives in the Palm Desert area and owns a condo outright that is in a Revocable Living Trust in which I am the main beneficiary.

Anyway she wants to sell it. Are there any issues on getting the money out in her name or will it be in the Revocable Trust name once a seller is found? Would there be any issues listing the house?

If she wanted to change it back to her name, could she do it in escrow after a seller is found?

If we kept the Revocable Trust name on the listing would we have to open up a Revocable Trust name say in her bank to deposit the proceeds?

Thanks, Lou

Answer
You may be the main beneficiary, Lou, but I suspect your mother is the trustee. The trustee is the boss of a revocable living trust. You are probably the successor trustee, I suspect. So when the condo has sold, as the trustee she may do as she wishes with the proceeds of sale.

The idea of a revocable living trust is to escape the hassle of a probate. Upon her passing, you as the beneficiary/successor trustee may do as you wish as the new trustee for the trust.

Your mother, as trustee, would be the one who signs any documents, including listings and closing statements. However, in such a trust there may be a power of attorney in existence, which may give you  the authorization to do everything for her and the trust. I strongly suggest you verify all this with the attorney who put the trust together. Or any estate attorney if the original one is not available. Hey, maybe even your mom knows all the answers, too. Ask her. I do wish you well.

Dick Dennis
CA Real Estate Broker
Lic.#00349415
dixiedee13@aol.com