How to Transfer a House Out of a Trust After Death in California

When a loved one passes away and leaves behind a living trust, it’s often with the intention of making things easier. And in many ways, it does. One of the most common questions we hear from families in Los Angeles County is:

“Now that my parent has passed and the house is in the trust, how do we transfer or sell it?”

The good news? Trust administration is far more streamlined than probate. But there’s still a legal process involved especially when it comes to transferring real estate.

This blog will walk you through how to transfer a house out of a trust after someone dies in California.

First, What’s the Role of the Trustee?

If you’ve been named the successor trustee, your job is to follow the instructions laid out in the trust.

Unlike probate, you don’t need court approval to act but you are still legally responsible for:

• Managing the trust assets

• Paying off debts and taxes

• Distributing the property according to the trust’s terms

If a house is held in the trust, the trustee controls what happens to it — whether it’s transferred to a named beneficiary or sold for distribution.

Step-by-Step: How to Transfer Real Estate Out of a Trust

✅ 1. Obtain the Death Certificate

Before anything can be transferred, you’ll need an official death certificate for the trust creator (the grantor).

This is required to prove that the trustee has now stepped into their role.

✅ 2. Review the Trust Document

Carefully review the trust. It should specify:

• Who the trustee is

• Who inherits the property

• Whether the home should be kept, sold, or divided

If it’s unclear or if there are conflicts between beneficiaries, it’s wise to consult a trust attorney.

✅ 3. Check Title of the Property

Confirm that the home is actually titled in the name of the trust. Look at the current deed — it should list the trust as the owner.

If the home was not properly transferred into the trust before death, you may need to file a Heggstad petition in probate court to fix it.

✅ 4. Prepare a Trust Transfer Deed

This is the legal document used to move the property out of the trust.

Depending on the next step, this could be:

• A Grant Deed to a named beneficiary, or

• A Trust Transfer Deed to a third-party buyer, if the property will be sold

This deed must include the proper legal description of the property and must be signed, notarized, and recorded with the Los Angeles County Recorder’s Office.

✅ 5. File a Preliminary Change of Ownership Report (PCOR)

This form goes with the deed and notifies the county that ownership is changing.

If the home is being transferred to a child or family member, you may qualify for a parent-child transfer exclusion which can help avoid property tax reassessment under Proposition 19 (check with a tax advisor or attorney).

✅ 6. Record the Deed

Submit the signed deed and PCOR to the County Recorder.

In Los Angeles County, this can be done in person, by mail, or sometimes electronically through your title or escrow company.

Once recorded, the property is officially out of the trust and in the name of the new owner.

What If You’re Selling the Home Instead?

If the trust says the home should be sold and proceeds divided:

• The trustee will sign the listing agreement as the seller

• The sale proceeds will go into the trust account

• Funds are then distributed per the trust’s instructions

In these cases, The Borges Real Estate Team can help ensure you’re properly documented, accurately priced, and navigating trust sales in full compliance with California law.

Do You Still Need a Lawyer?

While selling or transferring a home from a trust doesn’t require probate court, we always recommend working with:

• A trust attorney (to review documents and avoid liability)

• A CPA or tax advisor (especially if Prop 19 or capital gains apply)

• A real estate team with trust sale experience (that’s us!)

Helping Los Angeles Families With Trust Property Sales

At The Borges Real Estate Team, we’ve helped dozens of families across Los Angeles County sell or transfer real estate held in trusts including guiding successor trustees through the entire process from the first call to final distribution.

We speak the language of attorneys, CPAs, escrow, and beneficiaries. We’re here to make the process as smooth as the trust intended it to be.