Q: Can I sell a trust that has no beneficiary?
My mother wants to leave me her property and home in a trust. The way she has written the trust is that I would be required to pay taxes and insurance and never have the option to sell it or do anything to it. She lists me with two other people as the trustees, to make decisions jointly. I'm not sure she ever lists anyone as a beneficiary; she lists just me as the one to pay the insurance and taxes, while being unable to modify the land or sell it. Would I be able to challenge it in court to sell it, or must I get the permission of the other trustees, who are not required to maintain or pay anything on the trust?
A: If a lawyer drafted the trust, I’d bet there is a beneficiary listed somewhere. Perhaps it is in another part of the trust than you were looking. But it would be incredibly unusual for a lawyer to draft a trust without a beneficiary. If a lawyer did not draft the trust, there is no way anyone could answer your questions without reading your mother’s trust. I suggest you take the document to a lawyer in your area and ask for an interpretation. One last point: please remember that the assets (including the home) belong to your mother. She can do whatever she wants with the assets, including giving all of them to a charity. I’m constantly surprised how many people feel entitled to receive a relative’s assets. There is no requirement that parents give their assets to their kids. Think of it this way: how would you feel if I told you that you must give away all your assets to a person I selected? Your mom, you, and everyone else in this country has the right to do whatever they want with the assets they own. Best wishes!!
A:
You may face complications if the trust does not clearly name a beneficiary. A valid trust generally needs a beneficiary who can enforce the trust’s terms. If the trust truly has no named beneficiary, a court could find it unenforceable.
Because three people are listed as trustees, you must all agree on decisions such as selling the property. If you want to challenge the trust, you may need to file a petition asking the court to allow you to modify or terminate it. You could argue that the terms are unreasonable if you bear all expenses without a real benefit.
A judge might permit adjustments to the trust if it serves no valid purpose or creates unfair burdens. You would likely need legal guidance to confirm the trust’s provisions and explore all remedies. You could seek the court’s intervention if your fellow trustees refuse to cooperate or if the trust’s terms are unclear.
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