Real Estate Law
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Can you provide me a bit more information? Is this an irrevocable trust? Or, is this a revocable living trust? Who is the trustee? What does the trust agreement say about distributions from the trust? Thanks.
Would it be possible for you to attach a copy of the trust agreement?
Thank you. If the trust is revocable, then you would be considered the owner of the house and you would be able to exclude up to $500,000 (as a married couple) of the gain from sale under Section 121 of the Internal Revenue Code due to it being your principal residence. If the trust is irrevocable, then the trust would be considered the owner, and the trust would pay tax on the gain as a long term capital gain. Any proceeds remaining after the payment of the taxes could be used to reinvest the proceeds in a smaller house and, subject to the trust agreement, the remaining amounts distributed to you.