Buying or Selling a Florida Home Held in a Trust: Revocable Trusts, Homestead and Closing

Selling or buying a Florida home held in a trust is common in Palm Beach County, where many owners use a revocable living trust to plan their estate. The sale works much like any other. However, a few extra steps come up at closing: the title company needs proof of who can sign, and the property tax exemption needs the right paperwork. This guide walks through those steps for both sides of the deal.

Key takeaways

• When a trust owns the home, the trustee signs the contract and the deed, not the owner in a personal capacity.
• Florida law lets a trustee give a short "certification of trust" instead of the full trust document. Title companies and buyers may rely on it in good faith.
• A trustee named in a recorded deed has broad power under Florida law to sell the property.
• The Palm Beach County Property Appraiser uses a Certificate of Trust, not the trust agreement, to review homestead for trust-owned homes.
• Married owners and heirs face extra homestead rules. A Florida attorney should review any trust that holds a primary home.

Why owners keep a Florida home held in a trust

Most owners use a revocable living trust. The owner creates the trust, names themselves as trustee, and moves the home into it with a new deed. While they are alive, they can change or cancel the trust at any time.

The main goal is usually to make things easier for heirs. When the owner dies, a successor trustee can often manage or sell trust assets without a full probate case for that property. That can save time. Still, a trust is not right for everyone, and the setup has legal costs. Fees vary by attorney and by how complex the estate is, so ask for a quote before you start.

If an estate does go through probate, the process is different. Our guide on how an executor sells a house in Florida covers that path.

Who signs when you sell a Florida home held in a trust

The trust itself is not a person, so someone has to act for it. That person is the trustee. In a living trust, the trustee is usually the owner. After the owner dies or becomes unable to act, the successor trustee named in the trust steps in.

The trustee signs the listing agreement, the purchase contract and the deed. Each document should show the trustee's name and title, for example "Jane Smith, as Trustee of the Jane Smith Revocable Trust." If there are co-trustees, the trust document decides whether one can sign alone or whether all must sign.

The trustee's power to sell

Florida Statutes section 689.073 helps here. When a recorded deed names someone as trustee, that trustee has "full power and authority" to sell, lease or mortgage the property. People dealing with the trustee also have no duty to look into the beneficiaries or the trustee's reasons. As a result, a buyer can take title free of claims by the trust's beneficiaries, who must take up any dispute with the trustee instead.

The certification of trust title companies ask for

Trust documents can run dozens of pages, and they often contain private family details. So Florida law offers a shortcut. Under section 736.1017, a trustee can give a certification of trust instead of the whole document.

The certification must state several facts, including:

• that the trust exists and the date it was signed;
• who created it and who the current trustee is, with an address;
• the trustee's powers;
• whether the trust is revocable, and who can revoke it;
• whether co-trustees must sign together; and
• that the trust has not been changed in a way that makes the certification wrong.

Anyone who relies on the certification in good faith is protected under the statute, so title companies use it all the time. Some may still ask for excerpts of the trust, such as the pages naming the trustee and listing the powers.

Other papers the title company may want

Expect a request for the recorded deed into the trust and photo ID for the trustee. If the original trustee has died, the company will usually want a death certificate and proof that the successor has accepted the role. Every title company has its own checklist, so ask early.

Homestead rules for a Florida home held in a trust

Florida's homestead exemption can lower the taxable value of a primary home. Many owners worry that moving the home into a trust will cost them that break. In general it does not, if the paperwork is right.

Section 196.041 of the Florida Statutes treats a person with a lifetime beneficial interest in the home as holding equitable title for the exemption. That is how a typical revocable living trust is set up.

In Palm Beach County, the Property Appraiser's office says it does not need the trust agreement. Instead, it uses a Certificate of Trust to see who has the beneficial interest and who has the right to live in the home. If you move your home into a trust, contact the office's Exemption Services team to make sure the exemption stays in place.

Homestead limits for married owners and heirs

Florida also has separate homestead rules that limit how a primary home can be left at death when the owner has a spouse or minor child. Putting the home in a trust does not always avoid those limits. These rules are complex, and mistakes can be costly. Have a Florida estate planning attorney review the trust before you sell or buy.

Buying a Florida home to be held in a trust

Some buyers want to take title in their trust from day one. That can save the cost and effort of a second deed later. Tell your agent, the title company and your lender early.

• Cash buyers can usually take title straight in the trust's name.
• Financed buyers should check with the lender first. Some lenders want the loan closed in the buyer's own name, with the deed moved to the trust later. Others will lend to a revocable trust if it meets their rules.
• Homestead still needs a timely application with the Property Appraiser after you buy.

The buyer's attorney can confirm the trust name and the trustee wording, so the deed matches the certification exactly.

Checks before buying a Florida home held in a trust

If you are buying a Florida home held in a trust, the deal is usually smooth. Still, a few checks protect you.

1. Confirm that the person signing is the current trustee, using the certification of trust.
2. If there are co-trustees, confirm whether all of them must sign.
3. Ask whether the original trustee has died. If so, the title company will need proof of the successor's authority.
4. Buy owner's title insurance, which covers many title defects that could surface later.
5. Review the seller's disclosures. A successor trustee who never lived in the home may know little about it, so a thorough inspection matters more.

Timing a sale by a successor trustee

When the owner has died, the successor trustee may want to sell quickly to stop carrying costs such as taxes, insurance and HOA dues. A trust sale often moves faster than a probate sale, since there may be no court case for the home. However, the trustee still has duties to the beneficiaries, including acting fairly and getting a fair price.

For that reason, many trustees order an appraisal or a broker opinion of value before they list. A written record of how the price was set can help if a beneficiary later questions the sale. A free home value estimate is a quick way to start.

Costs and taxes to plan for

Selling through a trust brings the usual Florida closing costs, such as title insurance, the deed tax and any agent fees. The trust structure itself rarely adds much at closing. However, a few items deserve a question to your adviser before you list.

• Ask whether any tax applied when the deed moved into the trust, and confirm it was recorded correctly.
• Ask your tax adviser how the sale is reported. With a revocable trust, the owner is usually treated as the owner for income tax, but your facts decide.
• If the owner has died, ask how the home's tax basis is set, since that can change the gain on sale.

Local notes for Palm Beach County owners

Trust ownership is common among owners of high-value homes, including on the island of Palm Beach and in Boca Raton and Jupiter. Many owners there also split time between Florida and another state. If your trust was drafted in another state, have a Florida attorney confirm that it works smoothly with Florida title and homestead rules before you list.

Frequently asked questions

Can I sell a Florida home held in a trust without going to court?

Usually yes. The trustee can sell under the trust and Florida law, and the title company relies on the certification of trust. A court case is not normally needed for the home itself.

Do I lose my homestead exemption if I put my home in a trust?

In general, no, if you keep a lifetime beneficial interest and file the right papers. In Palm Beach County, the Property Appraiser uses a Certificate of Trust to review the exemption.

Does the buyer get to read the whole trust?

Not usually. Florida law lets the trustee give a certification of trust instead. The title company may ask for a few excerpts, but the full trust usually stays private.

Who signs the deed when a trust sells the home?

The trustee or trustees, signing in their role as trustee. After the owner dies, the successor trustee named in the trust signs.

Sources

• Florida Statutes section 736.1017: Certification of trust
• Section 689.073, Florida Statutes: Powers of trustee in a recorded instrument
• Florida Statutes section 196.041: Extent of homestead exemptions
• Palm Beach County Property Appraiser: Exemption Services

This article is general information, not legal, tax or financial advice. Trust and homestead rules depend on your documents and family, so speak with a Florida attorney about your situation.

Selling a home owned by a trust? Book a no-obligation listing consultation and we will help you plan the sale with your attorney and title company. Contact Pure Equity. Buying a home into your trust? Our agents can coordinate the details from offer to closing.