Legal Question in Wills and Trusts in California
My 88 yr old father has sold his home. It was listed in his trust and has no loan to pay off. Do the proceeds have to go back into an account listed in the trust or can he do as he chooses?
3 Answers from Attorneys
As long as he is still the Trustee of the trust, he can do whatever he wants with the money.
Mr. Jordan is correct, but I should point out that if the funds are not put into an account within the trust they may be subject to probate administration in the courts upon your father's death.
I disagree with the previous answers. The first question that must be asked is whether the trust is revocable. Most are, but if it is not, your father CANNOT take the proceeds out of the trust. They must be deposited in an account in the name of the trust.
Second, even if the trust is revocable, it must either be revoked, or at least the property deeded out of the trust before the sale closes, OR the proceeds must be placed in an account belonging to the trust and then removed later if he wishes.
Mr. Tillem is quite correct, however, that if the proceeds are not in the trust when he dies, they will have to be probated.