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Funds from sale of property from my living trust transferred to my regular savings account?

Discussion in 'Estate Planning, Creating Wills & Trusts' started by Kajal, Apr 5, 2021.

  1. Kajal

    Kajal Law Topic Starter New Member

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    We (me and my husband) are in the process of selling a property that is listed in our revocable living trust. Can The proceeds/funds from this sale be deposited in our regular joint savings account? Is it mandatory to have a trust account to transfer/deposit this money?
     
  2. flyingron

    flyingron Well-Known Member

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    You can go into your regular account.
     
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  3. adjusterjack

    adjusterjack Super Moderator

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    At some point prior to close of escrow you and your husband will be asked to sign a set of escrow instructions. Read them carefully. They make standard assumptions, one of which is likely to be that the check for the proceeds be in the name of the seller, which is the trust. Even if that is not specified somebody will make that assumption if not instructed otherwise. Make sure the escrow instructions include that you want the check made out to you and your husband.
     
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  4. Kajal

    Kajal Law Topic Starter New Member

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    Thank you for the reply. In case we are looking at the option of wiring the money into a US bank account (since we are out of country) will the process be the same? What I conclude from your response is that it’s the Escrow officer who can change whether to send it to trust account or regular savings account.
     
  5. adjusterjack

    adjusterjack Super Moderator

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    Escrow companies can do all sorts of things for you.

    You should be talking to your escrow officer about how the escrow company will deal with document signatures and and how you want the funds.

    It's not a difficult process but you need to talk it out with the officer and confirm everything in writing.
     
  6. zddoodah

    zddoodah Well-Known Member

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    Do you mean that title to the property (I assume we're talking about real property, correct?) is in your names as trustees of the trust? Or is it just "[l]isted in [y]our . . . trust"?

    Sure they can. Heck, they can be deposited in my bank account. You can have them deposited anywhere you like.

    No.

    It's worth noting that, as long as both of you are alive, your revocable living trust is almost entirely legally meaningless.

    Wire transfers are standard for escrows. It's relatively uncommon for escrow companies to issue paper checks (although it can be done).

    The escrow company should do exactly what the seller and buyer instruct it to do -- nothing more; nothing less; nothing different.
     

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