It’s a common question we hear quite often: How are sales proceeds disbursed to a trust?
To help you (and your clients) understand this important topic, we wanted to share a bit more information with you about this important topic.
Here are some basics:
- If the seller in a real property transaction is a trust, then the proceeds must be disbursed to the trust only.
- The payee of the proceeds must be identical to the vested owner of record.
- If the Seller does not have a bank account open in the name of the Trust, one will have to be opened prior to close of escrow.
- It’s important for all parties involved in the escrow to understand that there are a variety of trust types and powers afforded to trustees.
If you are asked to interpret trust documentation, it might be smart to get in touch with someone who is legally qualified to give this type of advice – like a CPA or attorney. And, of course, please feel free to contact us if we can be of assistance. We’re here to help!