trusts and liens.

[jgargano03]

What is the name of your state? Connecticut

My sibilings and myself are the beneficiaries of a trust, and my father is the trustee. When I was about 11 years old, before the trust was established it was owned by my grandfather, but my father owned a loan shark $10,000. The loan shark put a lien on the house in which my father legally didn't own, and still doesn't own now but is the trustee. Would we be able to take the lien off the house because my father never had ownership of the property or is a trustee basically the same as a power of attorney, and we assume all risks? I still think there is a loop hole, at the time that the judgement was placed, the property belonged to my grandfather, and not my father. I believe the confusion made by the court is in our first names which are all the same. Could someone give me some help on this matter, and clarification on the law?
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[Dandy Don]

Your father needs to find out what the deed/title actually shows, whether it is in the name of the trust or someone else. He is the one who needs to get legal consultation about how to handle the lien--if the house is eventually sold, the money from the sale will first be used to pay off the lien, so he needs to decide is there any mention in the trust of the house eventually being able to be sold or not or kept in the family. He needs to decide if the trust needs to pay to take care of the lien or let the heirs handle it later.

DANDY DON IN OKLAHOMA ([email protected])

 

[StuckOnStupid]

jgargano03, I read your post. Understanding that sarcasm, humor and wit are lost on Internet message boards I truly can't tell if you're serious or just having a laugh.

That being said, I'll play just for fun.

First let me say I find your post hilarious.

A "Loan Shark" put a lien on real property your Father didn't own? Really?

Does the "Loan Shark" work for the Gambino, Gotti, Bonano crime family or The Godfather himself, Don Corleone?

You state and I quote:

I believe the confusion made by the court is in our first names which are all the same.

Ok, I get it now. The Court was confused between Don Gambino, Don Gotti, Don Bonano or Don Corleone. I didn't know "Loan Sharks" bothered with the "Civil" Court System. I thought if one owed money to a "Loan Shark" if you didn't pay up they either broke your knee caps with a baseball bat, raped your wife or kidnapped your children.

Okay, I've had my fun....don't take offense....this "loan shark" thing just made me laugh....

On the chance you are serious with a legitimate question I'll take a stab at what my educated guess would be regarding this judgment lien the loan shark successfully placed on your Grandfather's home to secure payment of a debt from your Father on property he didn't legally own? ? ?

You state:

at the time that the judgment was placed, the property belonged to my grandfather, and not my father.

THAT IS NOT LEGALLY POSSIBLE. There is no way for a creditor to obtain a lien against property the debtor DID NOT own. Being a beneficiary of a trust or being named as a successor trustee of a trust DOES NOT give that person legal title to the trust property while the Settlor is living. My adult children are both successor trustee's and beneficiaries of my trust and none of their debts or legal problems will EVER result in a judgment on my property while I'm living.

It's my guess your Father actually owned this property as a Joint Tenant with Right of Survivorship with your Grandfather and the property was either used to secure the debt from the "loan shark" or the loan was for expensive improvements to the property such as a new roof, and air conditioning system or some other high dollar item. Obviously, the loan was not paid back and the creditor won a judgment lien on Grandpa's house.

The "loan shark" probably couldn't force a sale of the property to recover the debt because of it being your Grandfather's homestead. However, once Grandpa has died if the loan was for improvements on the property you'll have to pay up to clear title.

Go to the Official Public Records clerk in the county the property is located and research the deed to see if in fact your Father was actually on the deed with Grandpa.