Selling an Inherited, Trust or Probate Apartment Building in LA

A discreet, step-by-step sale for trustees, executors and heirs.

Selling a building you inherited, or one held in a family trust, is a different job from an ordinary sale. There may be a trustee, an executor, an attorney and several heirs, each with a say and a different goal. We work alongside your attorney and CPA to get the building valued, sold and closed cleanly, and discreetly.

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Trust sale vs. probate: what controls the building

If the building is held in a living trust, the successor trustee usually has the power to sell it under the trust's terms, without going to court. If it's held in the owner's own name with no trust, it generally passes through probate, and the court-appointed executor or administrator sells it under the Probate Code [1]. Your attorney confirms which path applies; we build the sale plan around it.

IAEA full authority vs. court confirmation

In probate, an executor or administrator granted full authority under the Independent Administration of Estates Act (IAEA) can generally sell after giving the heirs notice, without a court hearing. With limited authority, the sale needs court confirmation, which can include a hearing and the chance for other buyers to overbid in court [1]. That changes the timeline and how we market the building, so we plan for it from day one.

Working with trustees, executors and attorneys

We give the fiduciary what they need to act and to document it: a written valuation built from closed sales, a marketing record, every offer in writing and clear reporting to the attorney. Tenants are handled with care and within the rules; RSO and AB 1482 protections stay in place through the sale.

Case study: a trust sale in Encino

16300 Ventura Blvd Encino, CA 91436: Mixed-Use Retail + 49 Apartments in Encino | SOLD $31,250,000
5.36% cap · 13 GRM · $546/SF

16300 Ventura Blvd was a trust sale. It's a rare mixed-use building with forty nine residential units and two commercial units anchored by JP Morgan, with about ten thousand square feet of retail and office space and two hundred forty feet of frontage on Ventura Blvd. The Saghian Group represented both the buyer and the seller, and it closed for $31,250,000.

Step-up in basis, Prop 13 and Measure ULA

Three tax questions come up in almost every inherited sale. Your CPA and attorney give the answers for your situation; here's what to ask about:

Step-up in basis: inherited property often gets a new tax basis at the date of death, which can shrink the capital gain on a sale. Ask your CPA how it applies to you.
Prop 13 and Prop 19: a transfer to heirs is usually a change in ownership that can trigger reassessment, and Proposition 19 narrowed the parent-child exclusion [2]. That matters if some heirs want to keep the building instead of selling.
Measure ULA: a sale inside the City of Los Angeles above $5,400,000 pays an extra 4%, and 5.5% at $10,900,000 or more [3], whether or not the seller is a trust or estate.

Dividing proceeds among heirs, or a 1031 for some of them

Heirs don't always want the same thing. Some want cash; others want to keep investing. Depending on how the trust or estate is set up, your attorney and CPA may be able to structure the sale so different heirs take different paths, including a 1031 exchange for those who want to stay in real estate. We'll run the sale and the replacement search together.

Frequently Asked Questions

How long does a probate apartment sale take in Los Angeles?
It depends on the authority the executor has. With full IAEA authority, the sale can move like an ordinary sale after notice to heirs. A court-confirmed sale adds a hearing and possible overbidding [1]. We'll map the timeline with your attorney.

Does a trust sale need court approval?
Usually not. A successor trustee can generally sell under the trust's terms without court confirmation. Your attorney confirms what your trust allows.

Can heirs who want cash and heirs who want to exchange both be accommodated?
Often, yes, with planning by your attorney and CPA before the sale. We coordinate the sale and any replacement property search so both paths can work.

What happens to the tenants?
They stay. Existing tenancies and rent-control protections carry over to the buyer. We handle showings and notices respectfully and within the rules.

Sources [1] Judicial Branch of California, Self-Help Guide: Probate. selfhelp.courts.ca.gov
[2] California State Board of Equalization, Proposition 19. boe.ca.gov
[3] City of Los Angeles Office of Finance, Real Property Transfer Tax and Measure ULA FAQ (rates: 4% over $5,400,000 and under $10,900,000; 5.5% at $10,900,000 or more; on top of the 0.45% base tax). finance.lacity.gov