Trustee role

[ssullivan1]

What is the name of your state? Georgia

My father has setup a trust and has named me as the trustee (only), however, he stiuplated in the trust that we (my brother and I) can never sale the property without each others approval and that my brother remains to live in the property until he moves or passes. This clause has a legal term but I cant remember what it is called. The attorney also stated that I can will the property and inherit it but my brother can not will it at all. I am ok with that, however, my main concern is what if my brother does not pay half the bills including mortgage/utilities ? The house if not paid off. What am I to do if he refuses to pay? My father always let him got away with not paying. What are my alternatives to deal with the situation

 

[Zigner]

I would suggest you seek clarification from the attorney that you mentioned.

 

[LdiJ]

What is the name of your state? Georgia

My father has setup a trust and has named me as the trustee (only), however, he stiuplated in the trust that we (my brother and I) can never sale the property without each others approval and that my brother remains to live in the property until he moves or passes. This clause has a legal term but I cant remember what it is called. The attorney also stated that I can will the property and inherit it but my brother can not will it at all. I am ok with that, however, my main concern is what if my brother does not pay half the bills including mortgage/utilities ? The house if not paid off. What am I to do if he refuses to pay? My father always let him got away with not paying. What are my alternatives to deal with the situation

I believe that the arrangment you are referring to is a life estate. The only way that someone is going to be able to help you is if they can read the entire trust. You would need an attorney for that.

 

[ssullivan1]

Thanks, yes this is correct. Life estate.

 

[ssullivan1]

I would suggest you seek clarification from the attorney that you mentioned.

Thanks.

 

[adjusterjack]

Is your father still alive?

 

[ssullivan1]

Yes

 

[Zigner]

If your brother does not properly maintain the property (including paying any required utilities, taxes, etc.) then that may be considered to be committing "waste," which may be a reason to end his life estate and force him out of the property. Discuss this possibility with the attorney.

 

[adjusterjack]

Is your father still alive?

Yes

Then this is a great opportunity to bring your concerns to your father and. along with your father's attorney, get the trust rewritten to address the contingencies that you are concerned with.

 

[ssullivan1]

Thanks I really appreciate the advice. I reached out to the attorney however, she stated that I am not the client my father is and that was what he wanted for my brother to stay and remain in the house, like I said earlier I do not have a problem with him statying its just that my brother has never been consistent with paying my father anything and my father pays everything. Its sad because over the years I told my mother and father that they should set some rules for him. I am afraid that when my father passes, my brother's behavior will worsen. Thats why I want my father to make stiupations/changes to the life estate that my brother will not have groups of people there in and out the property, having wild parties, etc.

 

[ssullivan1]

Then this is a great opportunity to bring your concerns to your father and. along with your father's attorney, get the trust rewritten to address the contingencies that you are concerned with.

Will do. I will talk with him today. The trust is still in draft mode.

 

[Zigner]

Thanks I really appreciate the advice. I reached out to the attorney however, she stated that I am not the client my father is and that was what he wanted for my brother to stay and remain in the house, like I said earlier I do not have a problem with him statying its just that my brother has never been consistent with paying my father anything and my father pays everything. Its sad because over the years I told my mother and father that they should set some rules for him. I am afraid that when my father passes, my brother's behavior will worsen. Thats why I want my father to make stiupations/changes to the life estate that my brother will not have groups of people there in and out the property, having wild parties, etc.

That's not something that can be controlled. With a life estate, it's generally his property to do with as he pleases, so long as he doesn't cause waste.

 

[zddoodah]

My father has setup a trust and has named me as the trustee (only), however, he stiuplated in the trust that we (my brother and I) can never sale the property without each others approval and that my brother remains to live in the property until he moves or passes.

Is this a revocable or irrevocable trust? And, just to confirm, you're the current trustee, not just a successor trustee, right? Has title to the property in question been transferred into the trust?

The attorney also stated that I can will the property and inherit it but my brother can not will it at all.

This is an attorney who represents your father, right? I'd be awfully curious to know why this attorney thinks you can "will" the property since you cannot pass anything by will that you do not own, and it doesn't seem that you own this property.

what if my brother does not pay half the bills including mortgage/utilities ?

Is your brother obligated under the mortgage? If not, why would he pay it? Has he been paying the mortgage in lieu of paying rent? Why only half? As for utilities, if they don't get paid, service will eventually be shut off.

What am I to do if he refuses to pay?

What does the trust say about this? Is there a written lease agreement between the trust and your brother? If the trust owns the property and the tenant (your brother) doesn't pay rent, then one would assume you could evict him. However, if the trust prohibits that, then does the trust otherwise have assets that could be used to pay the mortgage? If not, then you've got a real mess on your hands and might want to consider resigning as trustee (you should only do so in consultation with an attorney who represents you in your capacity as trustee).

The trust is still in draft mode.

Wait...what??? So there is no trust? If there's no trust, then you're not a trustee, and this is none of your concern. If your father is creating a trust and wants you to be trustee and you don't understand the trust or what being trustee entails, then you should decline his request.

 

[ssullivan1]

Is this a revocable or irrevocable trust? And, just to confirm, you're the current trustee, not just a successor trustee, right? Has title to the property in question been transferred into the trust?




This is an attorney who represents your father, right? I'd be awfully curious to know why this attorney thinks you can "will" the property since you cannot pass anything by will that you do not own, and it doesn't seem that you own this property.




Is your brother obligated under the mortgage? If not, why would he pay it? Has he been paying the mortgage in lieu of paying rent? Why only half? As for utilities, if they don't get paid, service will eventually be shut off.




What does the trust say about this? Is there a written lease agreement between the trust and your brother? If the trust owns the property and the tenant (your brother) doesn't pay rent, then one would assume you could evict him. However, if the trust prohibits that, then does the trust otherwise have assets that could be used to pay the mortgage? If not, then you've got a real mess on your hands and might want to consider resigning as trustee (you should only do so in consultation with an attorney who represents you in your capacity as trustee).




Wait...what??? So there is no trust? If there's no trust, then you're not a trustee, and this is none of your concern. If your father is creating a trust and wants you to be trustee and you don't understand the trust or what being trustee entails, then you should decline his request.

Thanks, I am not sure what kind of trust it is. The attorney only stated that I will have more authority than my brother. He can stay there until he moves or passes. Neither one of us can sale the property because the life estate in attached to the trust..,.I do not reside there, he does. My father allows him to get away with not paying (anything) every month and I cant do that once this thing is active. Yes that is a very good idea you mention to hire an attorney that represents me as the trustee.