Estate Sales Vs. Trust Sales: Whats The Difference

Estate Sales Vs. Trust Sales: Whats The Difference?

An estate sale and a trust sale are both ways to sell your belongings after you pass away. However, theyre two very different things. An estate sale is when your heirs sell the items in your estate to recoup any inheritance taxes and outstanding debts. A trust sale, on the other hand, is when you set up an irrevocable trust to manage your assets while you are alive. After your death, the proceeds from the trust go directly to beneficiaries of your choosing. Read on to learn more about these two options.

What is an estate sale?

An estate sale occurs when an executor sells off the items in a deceased persons estate to raise money for inheritance taxes and outstanding debts. Generally, the executor hires a professional estate sale company to organize and run the sale. The proceeds from the sale are used to pay off any debts, such as mortgages and credit cards, as well as any taxes owed on the estate. Estate sales are more common in the United States than trust sales in large part because they are cheaper and easier to set up. It is important to note, however, that an estate sale is not the same thing as probate. Instead, an estate sale occurs outside the court system. An estate sale is also a great option if you have a lot of sentimental items that you dont want to part with but dont have room for in your home. An estate sale is also a good option if you have items that are in bad shape or are too old or obscure to sell at a regular consignment shop.

What is a trust sale?

A trust sale occurs when you set up an irrevocable trust that distributes the proceeds of the sale of your assets after your death. Beneficiaries receive the proceeds from the trust sale once you pass away. A trust sale is similar to probate, but with a few key differences. First, a trust sale occurs outside the court system. Second, with a trust sale, you can choose the beneficiaries of your assets, as opposed to probate, where the judge makes the decision. Third, with a trust sale, you can set up the trust to distribute the proceeds to your beneficiaries over a set period of time, as opposed to probate, where you have no control over the amount of time it takes to resolve the estate.

How are they different?

An estate sale is a sale of your property held while you are still alive. A trust sale occurs after you die. An estate sale is held inside the court system. A trust sale occurs outside the court system. An estate sale distributes proceeds at once. A trust sale distributes proceeds over time. An estate sale is cheaper to set up than a trust sale. A trust sale is more convenient to set up than an estate sale. An estate sale distributes proceeds to everyone in the deceaseds will. A trust sale distributes proceeds to the person(s) you choose. An estate sale involves selling all your belongings. A trust sale involves selling some of your belongings.

When should you hold an estate sale?

An estate sale is a great option if you have a lot of sentimental items that you dont want to part with but dont have room for in your home. An estate sale is also a good option if you have items that are in bad shape or are too old or obscure to sell at a regular consignment shop. If you have a lot of valuable items, an estate sale may be a good option as well. This is because an estate sale is cheaper to set up than a trust sale. However, it is important to note that an estate sale is also a great option if you have a lot of valuable items. With an estate sale, you have more control over what items are sold and for how much. An estate sale also gives you a chance to have a say in who buys specific items. With a trust sale, you dont have any control over those two things.

When should you hold a trust sale?

A trust sale is a great option if you have a lot of high-value items that you want to pass on to your beneficiaries after you die, but dont want them to have to wait until after your death to receive the proceeds. This is especially true if you have a lot of cash-earning assets, such as stocks or bonds, in your trust. With a trust sale, you can choose to distribute funds as soon as theyre available so that your beneficiaries can use the money as soon as possible. A trust sale is also a great option if you have a lot of items with sentimental value that youd like to give to your beneficiaries after your death. With a trust sale, you can distribute the proceeds from the sale of your assets at any time after your passing.

Conclusion

An estate sale and a trust sale are both ways to sell your belongings after you pass away. However, theyre two very different things. An estate sale is when your heirs sell the items in your estate to recoup any inheritance taxes and outstanding debts. A trust sale, on the other hand, is when you set up an irrevocable trust to manage your assets while you are alive. After your death, the proceeds from the trust go directly to beneficiaries of your choosing.