Q: What happens to a revocable land trust when is terminates/expires?
I am a co-trustee on a revocable land trust originally designed to generate cash for our children's education. Neither child needed it for that purpose. Our divorce agreement states it will terminate upon our youngest turning 30. It does not specify what happens at termination. I am not aware of any other legal documents regarding the trust. My ex thinks the kids automatically gain ownership, but I think it reverts to the two of us. We are at odds and cannot come to any agreements. Any help is appreciated.
A: We would need to see the trust agreement to determine whether the property reverts to the grantor(s), or whether title vests in the beneficiaries. If the trust is still revocable (because the grantor(s) are alive, the grantors could revoke the trust and own the property as they choose. There is great flexibility in the provisions of trusts, so a review of the trust agreement is key.
Trent Harris agrees with this answer
A:
Without reviewing the document, it's hard to say. Was the trust created through the judgment of divorce? I'm leaning toward your interpretation, which would then subject the property to any terms in the judgment of divorce. But again, an attorney would need to review the actual document.
A trust, in general, would say "we own this land. If we die or become incapacitated, then our trustee should sell or hold the property in trust for our children until they turn 30". The "revocable" designation means that at any point you are not dead or incapacitated, you are able to buy, sell, mortgage, or trade that land as any other owner could. There is probably also a provision that if you still own the land when you die or are incapacitated, and your children are over 30, then they receive the land outright.
Trent Harris agrees with this answer
1 user found this answer helpful
A: An attorney needs to review the terms of the revocable trust as well as the divorce decree to determine how the trust expires on its own terms, or if the terms of the court order prevails. The answers are in the terms of the documents. See www.ProvenResource.com for more information.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
