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Trustee vs Beneficiary right to live in home
Saturday, May 15 2010 10:04 PM
I am a beneficiary of a trust that owns the house I live in. My father just passed away and my brother(trustee) wants me to pay him rent to live in the house that I inherited a portion of. Can I live in the house rent free when there isnt a mortgage on the house. I live in Illinois
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Randy Hughes
Land Trust Expert-40+ years of experience
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Re:Trustee vs Beneficiary right to live in home
Sunday, May 16 2010 08:37 AM
PLEASE SEE MY COMMENTS BELOW IN BOLD.
RANDY
I am a beneficiary of a trust that owns the house I live in. My father just passed away and my brother(trustee) wants me to pay him rent to live in the house that I inherited a portion of. Can I live in the house rent free when there isnt a mortgage on the house. I live in Illinois
IF YOU ARE THE SOLE BENEFICIARY YOU HAVE TOTAL CONTROL OVER THE TRUSTEE. THE TRUSTEE HAS NO POWER TO TELL THE BENEFICIARY WHAT TO DO....IN FACT, IT IS THE OTHER WAY AROUND...THE BENEFICIARY TELLS THE TRUSTEE WHAT TO DO. HOWEVER, IF YOU DO NOT OWN 100% OF THE BENEFICIAL INTEREST, THE OTHER BENEFICIARIES HAVE SOME INPUT TOO. ANOTHER CONSIDERATION IS; WHO HOLDS THE POWER OF DIRECTION? IF NOT YOU,THE BENEFICIARY, THEN THE HOLDER OF THE POWER TELLS THE TRUSTEE WHAT TO DO.
Randy Hughes
866-696-7347
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Tom
Trustee
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Re:Re:Trustee vs Beneficiary right to live in home
Sunday, May 16 2010 11:08 AM
If the trust was properly structured you would not have inherited a portion of the property, instead you would have a beneficial interest in the trust. The property in a land trust is deeded to the trustee who acts on behalf of the beneficiaries of the trust, you need to determine who the beneficiaries of the trust are and what percentage of the trust do they have.
If your brother as trustee is also a beneficiary of the trust there may be other problems which will surface over time which may invalidate the trust.
My suggestion in your case is to have a person knowledgeable in land trusts review your entire agreement to determine exactly what your position is.
Thomas K. Standen
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Randy Hughes
Land Trust Expert-40+ years of experience
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Re:Re:Re:Trustee vs Beneficiary right to live in home
Sunday, May 16 2010 12:29 PM
Tom,
Thanks for your input. Your comments were all valid issues.
Randy Hughes
866-696-7347
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sun5million
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Re:Re:Re:Trustee vs Beneficiary right to live in home
Sunday, May 16 2010 03:16 PM
They way it is set up is that 2/3 of the house that my father owned(his share and his fathers share) went into the trust. My mother who is still alive owns 1/3 and has given me permission to live rent free. The 2/3 owned by my father was split into a trust where the four children share 1/2 and the 6 grandchildren share 1/2. My share of the house is 8.2%. My nieces share is 5.5 percent. I have calculated that I have permission from 46% to live rent free inlcuding that of the last living person on the title of the house. My brother is a beneficiary that gets 8.2% plus controling 25% because he has 1/2 of the grandchildren. There is no response from the other benefiicaries
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Randy Hughes
Land Trust Expert-40+ years of experience
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Re:Re:Re:Re:Trustee vs Beneficiary right to live in home
Sunday, May 16 2010 03:19 PM
Who holds the Power of Direction?
Randy Hughes
866-696-7347
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sun5million
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Re:Re:Re:Re:Re:Trustee vs Beneficiary right to live in home
Sunday, May 16 2010 03:56 PM
My brother has power of direction of the trust and land trust for my fathers assets and his 2/3 of house
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Randy Hughes
Land Trust Expert-40+ years of experience
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Re:Re:Re:Re:Re:Re:Trustee vs Beneficiary right to live in home
Sunday, May 16 2010 04:06 PM
Please be more specific. I do not understand you. Does the brother have 100% control of the Power of Direction or does he share that power with someone else?
Randy Hughes
866-696-7347
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sun5million
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Re:Re:Re:Re:Re:Re:Re:Trustee vs Beneficiary right to live in home
Sunday, May 16 2010 04:16 PM
my brother has 100% power of direction of my fathers assets. My father owns 2/3 of the house which is in a trust. However my mother owns 1/3 of the house and she is still alive. The house was purchased in 3 names my grandfather, my father, and my mother. My grandfather and father are not alive anymore As I understand it my brother can only make decisions relating to my fathers assets not the 1/3 of the house that my mother owns.
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Randy Hughes
Land Trust Expert-40+ years of experience
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Re:Re:Re:Re:Re:Re:Re:Re:Trustee vs Beneficiary right to live in home
Sunday, May 16 2010 05:06 PM
It sounds like there are two different trusts operating here. Is that correct? One trust is the land trust that holds title to the property you live in (and your dad owned a 2/3 rds beneficial interest, your mom owns a 1/3 beneficial interest). The other trust is for the benefit of your father (like a living trust)...of which your brother holds 100% of the power of direction. If this is not the case and your brother has the power of direction over a land trust that holds title to the entire house (no matter who the beneficiaries are or where)....he (your brother) has the control. He could direct the trustee of the land trust to sell, refinance or rent the property to whomever.
Randy Hughes
866-696-7347
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sun5million
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Re:Re:Re:Re:Re:Re:Re:Re:Re:Trustee vs Beneficiary right to live in home
Sunday, May 16 2010 06:19 PM
Ok. Thank you for your help. I think I understand what the situation is.
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