Trust

[bratevaro]

My mom has a will stating that I am trustee and When I sell her house the money goes into the estate for a trust fund for great grandkids. Before my mom passed she was going to sell her house(in Oregon) and move to CA. buy a new manufactured home and her and I would live together. My question is this: It statws in the will that as trustee I have the power to invest the money from the sale of the house on stocks or bonds or property etc.. So can I still sell it and buy a new place in california still as long as there is the stipulation that they still get the money when they are of age??

 

[Taxing Matters]

So can I still sell it and buy a new place in california still as long as there is the stipulation that they still get the money when they are of age??

That depends on exactly what the trust document says. Understand that as trustee you have a fiduciary obligation to manage the trust assets in the best interests of the trust and its beneficiaries; if you use the trust assets to your advantage and to the detriment of the beneficiaries then the beneficiaries may sue you for the damages suffered as a result. So if the house is a trust asset and is sold, you need to ensure that the proceeds are properly invested for the benefit of the beneficiaries. Buying real estate can be an investment for the trust, but then the real estate should be rented to generate income for the trust. If you live in the home, therefore, you likely would need to pay fair market rent to the trust. Consult a trust attorney to make sure you get this right.

 

[HRZ]

AS posted it is very unclear when the trust is funded and when greatgrandkids have needs to be met by trustee for what.

TAken literally, you might chose to live in new home for 50 years, god willing, and perhaps Mom intends you have a roof over your head forever ..without paying .

AS an aside the current college financial aid models treat trust funds rather unfavorably compared to some other alternatives.

AS posted above...seek some legal eyes on exact words of this trust...

it is very unclear if sale of his house triggers funding trust. Or if you can roll it to a new house. ...my wid guess is if you sell existing home you must fund trust.