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In many states a trust that names the trustor, trustee and beneficiary as the same person would fail as a trust. The trust would fail under federal tax laws. The property that was transferred to the trust actually remains the property of the trustee as an individual and is exposed to creditors and the laws of intestacy if the owner dies. In the scenerio set forth above the wife is not an owner but she would inherit an interest in the property if the owner died. For example. If Jack has land conveyed to himself as a trustee of a trust of which he is the trustor and the beneficiary there has been no trust created and Jack owns the property in his own name as an individual. If he died the property would pass to his heirs at law according to the state laws of intestacy. Trust law is extremely complicated and largely due to "free" information available on the internet there has been an abundance of flawed trusts used to hold title to real estate. Those mistakes can be very costly to correct. You need to have this situation reviewed by an attorney who specializes in trusts ASAP.
What else can I help you with?
Is the banklender the trustee trustor or beneficiary?
The lender is the beneficiary. The borrower is the trustor and the third party working for the lender is the trustee.
Is it mandatory for trustee to sell principal residence?
If the trustee was instructed to sell the property by the trustor- yes.If the trustee was instructed to sell the property by the trustor- yes.If the trustee was instructed to sell the property by the trustor- yes.If the trustee was instructed to sell the property by the trustor- yes.
How do you find out if you are a beneficiary of a trust?
You must ask the trustor, the person who made the trust. Otherwise, you need to wait and see if you are ever notified that you are a beneficiary of a trust.You must ask the trustor, the person who made the trust. Otherwise, you need to wait and see if you are ever notified that you are a beneficiary of a trust.You must ask the trustor, the person who made the trust. Otherwise, you need to wait and see if you are ever notified that you are a beneficiary of a trust.You must ask the trustor, the person who made the trust. Otherwise, you need to wait and see if you are ever notified that you are a beneficiary of a trust.
What is the difference between a Trustee and a Trustor of property?
to get a basic concept between the difference of these two, there are basically three basic individuals involved in a trust. The trustor, the Trustee, and the beneficiary. The easiest way to understand this is by illustration. Trustor-------------------->Trustee----------------------->Beneficiary gives $ or property manages $ or property receives $ or use of property As an example, Anne (trustor or donor) wants to give $100,000 to her daughter Marie (the beneficiary), but does not want her to have access all of the money at once. Therefore, she gives the money to Hillary (the trustee) and tells her to only pay her daughter Marie 10,000 per year, over the next ten years. Now there would of course be other variables within this example such as management fees the trustor would charge, as well as accrued interest since the money would be held in a trust fund, but I'm trying to give a simple answer to a simple question.
What is a deed of trust and how does it work?
It is evidence of a mortgage loan secured by a promissory note. It includes three parties: a trustor, a trustee and a beneficiary for it to be valide.
In a Trust what is the Trustee and Trustor?
The trustor is the person who executes the trust and transfers their property to the trustee. Since a trust cannot act for itself, the trustee is the entity named by the trustor to manage the property held by the trust. The trustee holds title to the trust property.
Is an incapacitated trustor still a trustee?
A trustor and trustee are two different entities. A trustor is the entity that executes a Declaration of Trust that includes all the provisions that govern the trust. The trustee is the entity or person who is appointed to manage the trust property. There should be a provision in the trust that provides instructions for the appointment of a successor trustee.
When a trustor is established does a trustor have the ability to change the trustee in a deed of trust?
A trust is established by a Declaration of Trust. The trustee is the person appointed to hold title to and manage the trust property. The declaration contains all the powers of the trustee and the provisions of the trust. You must review it to determine if and how the trustee can be terminated and a new trustee appointed.
How does a successor trustee distribute the trustors personal belongings?
A successor trustee will distribute the trustor's personal belongings as dictated by the will and testament. This means that the successor trustee is bound by the same legal obligations as the original trustee.
What are the administrative duties of trustee after trustor dies?
You need to review the terms and provisions of the trust for your instructions.
What three parties are usually involved in the establishment of trusts?
the trustor, who is the party creating the trust and also maybe known as the settlor, grantor, or donor. Second is the beneficiary for whose benefit the trust is established. Finally, the third party is the trustee, who is responsible for the management
What do you do if a sibling is trustee of a living trust and you feel he may be using funds from the trust for his own use in California?
If possible you should discuss the situation with the trustor and ask to have the trustee removed. If that's not possible you could start by asking for an accounting by the trustee. You have an equitable interest in the trust property and the trustee is responsible while he is in charge. If you suspect that the trustee is borrowing against the trust, take him to court. Court's do not look favorably on self-dealing by a trustee and can remove the trustee if it finds the trustee is violating the trust. As a fiduciary the trustee is bound to do nothing that compromises anyone's rights under the trust. As a fiduciary the trustee has the obligation to grow the assets of the trust rather than waste them. If the trustee is making unsecured, no-interest loans to himself he is not making prudent decisions on behalf of the trust.
