How do you sell a house held in a living trust in Colorado Springs?

You sell it much like any other home, except the trustee signs on behalf of the trust. If the owners are their own trustees, they list and sign as usual, and the title company confirms their authority with a certification of trust or a statement of authority recorded in El Paso County. After a death or incapacity, the successor trustee named in the trust takes over and can sell without probate. The one catch: the house has to actually be deeded into the trust. If it isn't, probate may still be needed.

Who signs when a house is in a living trust

A living trust (also called a revocable trust) holds title to the home, and a trustee manages it. Who signs depends on where the family is in life:

The beneficiaries (the people who will receive the proceeds) don't sign simply because they're beneficiaries. The trustee does, following the trust's terms.

When the owners are their own trustees

This is the most common situation, and usually the simplest. In the trust sales I've been part of, the owners were their own trustees. They signed for the trust with the title company using their ID, and the sales went smoothly. The sale itself didn't need anything from an attorney.

What makes that work:

• The deed shows the trust or the trustees as owner. The title company checks the current vesting deed.
• The title company confirms the trustee's authority. It usually asks for a certification of trust, a short signed summary showing the trust exists, who the trustee is, and that the trustee can sell (C.R.S. 15-5-1013). It doesn't have to reveal who inherits what. Some title companies instead ask for a statement of authority recorded with the county (C.R.S. 38-30-172 and 38-30-108.5).
• Everything else is a normal sale. Pricing, preparation, disclosures, and the Colorado contract work the same way.

When a successor trustee sells after a death

This is the path that avoids probate, which is why many families set up a trust. A successor trustee usually:

1. Gets copies of the trust and any amendments, and confirms they're the named successor.
2. Obtains certified death certificates. The title company typically wants one as proof the trustee changed.
3. Signs a certification of trust as the new trustee, and records a statement of authority if the title company asks.
4. Notifies the beneficiaries. Colorado generally requires a trustee to notify beneficiaries within 60 days after a trust becomes irrevocable (C.R.S. 15-5-813). An estate attorney can confirm what applies.
5. Lists and sells the home, following any instructions in the trust, such as selling rather than distributing the house itself.

A successor trustee is a fiduciary. They owe the beneficiaries a fair process, which usually means pricing from market data and keeping good records. When one sibling is trustee and the others are beneficiaries, sharing the market analysis and the offers keeps things transparent. See how siblings can decide what to do with a parent's house.

If a parent is alive but can no longer manage their affairs, the trust usually spells out how the successor trustee steps in, often with a doctor's letter. That's one reason a trust can do more than a beneficiary deed, which does nothing during life.

The mistake that sends a "trust" house to probate

The most common problem isn't the sale. It's a house that was never put in the trust.

Signing a trust document doesn't move the house into it. The owners also have to sign and record a new deed transferring the home to the trust. If that step was skipped, or the house was refinanced and never deeded back, the county's records still show the owner personally. A successor trustee has no authority over a house the trust doesn't own. If the owner has died, that usually means probate, unless another tool like a recorded beneficiary deed covers it. See whether you have to go through probate to sell a parent's house.

The fix is simple to check ahead of time:

• Pull the current vesting deed. For a Colorado Springs home, deeds are public records at the El Paso County Clerk and Recorder, and the Assessor's property search shows the current owner name.
• Look at how the owner is listed. "Jane Smith, Trustee of the Smith Family Trust" or "The Smith Family Trust" means the house is in the trust. "Jane Smith" alone usually means it isn't.
• If it isn't in the trust, and the owner is alive and able, an estate attorney can prepare and record the deed now. It's a small step compared with probate later.

Colorado Springs details worth knowing

• Recording. Deeds and statements of authority for El Paso County homes are recorded with the Clerk and Recorder, which charges a flat $43 per document (flat fee effective July 1, 2025).
• Senior property tax exemption. Moving a home into an estate-planning trust doesn't by itself break the 10-year ownership requirement for Colorado's senior exemption. Colorado lists it as an exception. Confirm with the El Paso County Assessor before recording anything. See how the senior exemption works in El Paso County.
• Fraud alerts. El Paso County's free Recording Notification Service emails you when a document is recorded under your name, or the trust's name if you register it. Title fraud often targets homes whose owners have died.
• Timing a sale around a move. If the owners are selling as trustees before moving into senior living, a post-closing occupancy agreement can let them stay up to 60 days after closing.

Taxes when a trust sells the house

Two tax points come up most, and both belong with a CPA:

• While the owners are alive, a revocable trust is usually ignored for income tax purposes, so owners selling their home as trustees can generally still use the home sale exclusion ($250,000, or $500,000 for a married couple), if they meet the ownership and use tests. See capital gains on a longtime home.
• After a death, a home in a revocable trust generally gets a new tax basis equal to its value at the date of death. That often shrinks or eliminates the taxable gain if the trustee sells soon after, although the trust or heirs may still need to report the sale.

What could change the answer

• The house was never deeded into the trust. The trustee can't sell it, and probate or another court process may be needed.
• The trust is irrevocable, or it's a special needs or Medicaid planning trust. Different rules can limit a sale, and an elder law attorney belongs in the conversation.
• The trust requires co-trustees to act together, or beneficiaries must approve a sale. Everyone required has to sign.
• Beneficiaries disagree about selling or about the price. A trustee may want an attorney's guidance before listing.
• The trustee lives out of state. Colorado allows remote notarization, and a local agent can handle the on-site work. See selling a parent's home from out of state.

When to talk with a professional

An estate planning attorney can confirm the trust is set up and funded correctly, and prepare a deed if the house was never transferred. A successor trustee settling a trust after a death may want an attorney's help with notices, accounting, and distributions, even when the sale itself is simple. See how to choose a probate, estate planning, or elder law attorney in Colorado Springs. A CPA can explain the tax side before the house is listed. The title company can tell you early exactly which documents it needs.

I'm a REALTOR®, not an attorney or CPA. This page is general information, not legal or tax advice.

Sources

• Colorado Revised Statutes § 15-5-1013 (certification of trust)
• Colorado Revised Statutes § 38-30-172 (statement of authority) and § 38-30-108.5 (conveyances by and to trusts)
• Colorado Uniform Trust Code, C.R.S. 15-5-813, as summarized in Colorado Uniform Trust Code: Notice to Beneficiaries
• Frascona, Joiner, Goodman and Greenstein: Marketability Issues of Titles Held by Trusts and Trustees
• El Paso County Clerk and Recorder: Recording Fees
• IRS: Publication 523, Selling Your Home and Publication 551, Basis of Assets