How do you sell a house in a trust in Arizona? The trustee sells it, the same way an owner would, with a listing, a purchase contract and escrow. Arizona law (A.R.S. 14-10816) lists the power to "acquire or sell property... at public or private sale" among a trustee's powers, and title companies typically ask for a certification of trust rather than the entire trust document.
What changes with the type of trust? If it's your own revocable living trust, you're usually the trustee and the sale feels like any other. If the trust is irrevocable, or became irrevocable after a death, the trustee owes duties to the beneficiaries, including keeping them informed.
Data note: Legal points come from the Arizona Revised Statutes (Title 14, Arizona Trust Code) and the IRS's Gifts & Inheritances FAQ. This is general information, not legal or tax advice. No market statistics are included in this post.
Selling a Trust-Owned Home at a Glance
- Who signs: the trustee (or cotrustees, as the trust requires)
- Proof of authority: a certification of trust under A.R.S. 14-11013
- Privacy: the certification doesn't need to show who inherits what
- Revocable trust: the trustee's duties are owed to the settlor (the person who created it)
- Irrevocable trust: beneficiaries must be kept reasonably informed, with notices due within 60 days in certain cases
- Inherited home taxes: basis is generally the fair market value on the date of death
Step 1: Confirm the Trust Actually Owns the House
Pull the recorded deed. The owner should read something like "Jane Smith, Trustee of the Smith Family Trust dated..." If the deed is still in an individual's name, the house may not be in the trust at all, and a different process could apply. A title company will spot this quickly, but it's better to know before you list.
Step 2: Identify the Trustee and the Trust Type
Revocable Living Trust
While a trust is revocable, A.R.S. 14-10603 says the trustee's duties are owed exclusively to the settlor. If you set up the trust and you're the trustee, you're essentially selling your own house as trustee.
Irrevocable or Inherited Trust
When a settlor dies, a revocable trust typically becomes irrevocable, and a successor trustee steps in. Under A.R.S. 14-10813, that trustee must:
- Notify qualified beneficiaries within 60 days of accepting the trusteeship
- Notify them within 60 days of learning a revocable trust became irrevocable, including their right to request trust information
- Send reports at least annually to certain beneficiaries, listing assets, receipts and disbursements
Family Trust
"Family trust" usually describes who benefits, not a separate legal category. Read the instrument for whether it's revocable and who the trustee is.
Step 3: Prepare the Certification of Trust
Under A.R.S. 14-11013, a certification of trust can include:
- The trust's existence and the date it was signed
- The settlor's identity
- The current trustee's name and address
- The trustee's powers
- Whether it's revocable and who can revoke it
- Cotrustee signing authority
- How title to trust property is held
It must state the trust hasn't been revoked or amended in a way that makes the certification wrong. A recipient acting in good faith may ask for the excerpts that name the trustee and grant the power to sell, but generally can't demand the inheritance terms without a verified statement explaining why. Anyone who relies on the certification in good faith is protected.
Step 4: List, Disclose and Sell
The rest looks like any Arizona sale:
- Pricing: an agent's comparative market analysis, or an appraisal if beneficiaries want an independent number
- Disclosures: the standard Arizona REALTORS® contract still calls for a Seller's Property Disclosure Statement. A trustee who never lived in the home should answer what they know and say so
- Prep: clean-out, repairs and staging are typically paid from trust funds, as the trust allows
- Closing: escrow pays off any loans, and net proceeds go to the trust, not to an individual
Step 5: Plan for Taxes
The IRS says the basis of inherited property is generally its fair market value on the date of the decedent's death. If the house sells for more than that basis, there's a taxable gain. A quick sale after a death often means little gain, but who reports it depends on the trust. Bring in a CPA before you set the price.
“When I help a family sell a home in a trust, the house is rarely the hard part. The people are. Siblings want different things, someone lives out of state and everyone is grieving. What helps most is clarity: a written timeline, a pricing rationale everyone can see, and regular updates. It keeps the trustee on solid ground and the family on the same page.”
— Elizabeth Vijan, Tackett Team, eXp Realty
Frequently Asked Questions
Who signs when a house in a trust is sold in Arizona?
The trustee, under the powers in A.R.S. 14-10816 and the trust instrument.
Do I have to show my whole trust?
Usually not. A certification of trust under A.R.S. 14-11013 typically suffices.
Can you sell a house in an irrevocable trust?
Often, yes, if the trust allows it. The trustee must keep beneficiaries informed.
Do you pay capital gains on an inherited house in a trust?
Only on gain above the basis, generally the fair market value at death.
Selling a Home Held in a Trust?
I'll coordinate with your attorney, CPA and title company so the sale runs smoothly, and keep every beneficiary informed along the way.
Elizabeth Vijan | Tackett Team, eXp Realty
Scottsdale & Phoenix Real Estate Specialist
Talk With Elizabeth · Call or text 602-885-7752
Sources: A.R.S. 14-10816: Specific powers of trustee · A.R.S. 14-11013: Certification of trust · A.R.S. 14-10603: Settlor's powers · A.R.S. 14-10813: Duty to inform and report · IRS: Gifts and inheritances FAQ
Disclaimer: General information, not legal or tax advice. Trust terms control; consult an Arizona estate attorney and a CPA. Information deemed reliable but not guaranteed. Equal Housing Opportunity.
Tackett Team, eXp Realty · Get in touch