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mover1

Junior Member
What is the name of your state?
I live in the state of California and here's my question. My parents own three properties and have four children. One property worth about $200K is going solely to one sibling. Another property worth about $800K is being equally divided to the other three siblings and the last property is being divided into four. I'm just wondering if my parents can state in their living trust if one property can go to one sibling alone? Could the other siblings contest it? Is there any way that my parents can state one property ($800K) be purchased by one sibling for a specific amount to be divided equally and given to the other two siblings, even though it may be a lot lower than the actual value of the property without the other siblings contesting it? My parents have a living trust but I'm not sure if they also have a will. Any advice would be greatly appreciated.
 
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Jclaw24

Junior Member
general

I'm in my 3rd year of law school. So as a disclaimer, always talk to an attorney first.

First and foremost, find out if there is a will. Second, let me explain. A trust is what is called a "will substitute" and all property within a trust avoids probate. Therefore, any of the property not in the trust, but in the will, will be distribute according to the trust terms upon death. Because this is a "living Trust" I'm assuming it is in place now. I would also assume that your parents are the beneficiaries until upon their death (For A to life then to A,B,C upon A's death).

Can parents to a house to a specific child in trust? Why wouldn't you do this through a devise in a will? The function of a trust is for a beneficiary to enjoy the "benefit" of a trust res (property, which is the house, also known as owner of the equitable title). So the question is (because there is a division amognst legal and equitable titles in a trust), who is the owner of the legal title, or AKA the trustee (who must preserve the trust for the beneficiaries benefit). So, from what I gather, all the properties are in the trust for the three children for the children to enjoy. Who is the trustee?


Second, a specific property can be held in trust for the benefit of one child. For Example: House One held in trust (by whoever is trustee) for the benefit of X and House 2 and three held in trust for the benefit of all three children.

Can one child purchase a house from the trust? Depends on who the trustee is. I don't believe so under these facts, but then again, you need more facts developed to an attorney. If any of the children are the trustee for the benefit of the other child (for example, 1 and 2 holding in trust house 1 for child 1) then the trustee cannot buy the house from the trust...this would be a breach of their "duty of loyalty."

Finally, a trust can always be contested. However, the settlor's (creator of the trust) intent in derived from the document terms will always control, of course through court interpretation. There are situations in which beneficiaries can petition to have the trust terminated so the two interest (legal and equitable titles) merge. This may give you some ground work to have a discussion with a practicing attorney. Best of luck, I do accept emails.


John
 

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