QUESTION
When did it become law that if a trustee is named without naming the trust immediately following, that trust becomes an asset of the trustee?
Asked on Mar 19th, 2014 on Estate Planning - Michigan
11 ANSWERS
If the person is named a trustee they have no power until the trust is created as the directions for what they must do is in the trust instructions. They never become the owner of the assets, even once the trust is former; they always remain an intermediate who facilitates the disposition of assets. There has never been a change in this.
Answered on Mar 21st, 2014 at 8:39 AM
No sure to what your question relates, but, for example, it's always been the law that a conveyance of real property to "John Smith, Trustee" does not give notice of the existence of a trust and a later deed from John Smith, Trustee is sufficient to convey the property. If a trust, in fact, exists, then John Smith does not really own the property as his to do with as he'd like. He would still have obligations under the trust to deal with the property appropriately.
Answered on Mar 21st, 2014 at 8:15 AM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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I am not sure it is a "law".. In any case if an asset is given (or assigned) to a trustee the document giving the asset (or assigning the interest) should identify that the asset is going to a trust and not to the trustee personally. There must be some indication somewhere its is going to the trust and not the individual or the instructions can be deemed unclear and can be misinterpreted by the Trustee and the court who I assume would ultimately review the transaction. It is the intent of the grantor that must be proven and if the document is silent its easy to misinterpret. Thus if an asset is being assigned to a party who exactly the party receiving the asset should be clear. Think of it this way: Many times the named trustee is a very close family or friend.. so it would be reasonable for the grantor to gift the party acting as trustee something personally.
Answered on Mar 20th, 2014 at 5:47 PM
Edwin K. Niles
Huh? Could you be more clear?
Answered on Mar 20th, 2014 at 5:47 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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That has always been the law, if a will states: I give $10,000 to John Smith. Then that is a devise to Mr. Smith. If the will states: I give $10,000 to John Smith, Trustee. Then that is a devise to the trust. To avoid confusion most lawyers would write: I give $10,000 to the Smith Family Trust executed July 1, 2010. Even if John Smith is the trustee of the Smith Family Trust, if the will just says a gift to him, then that's a personal gift not to the trust.
Answered on Mar 20th, 2014 at 5:47 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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Well, I'd need to see the document referred to, but let's see: you make a deed to XY, trustee of the ABC Trust utd September 1, 2013, and you have transferred real property to XY *in his capacity as trustee of the named trust.* So, the property is his subject to the trust agreement. But if you just make a deed to XY, then you've transferred property to XY, period.
Answered on Mar 20th, 2014 at 5:46 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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Has always been the law.
Answered on Mar 20th, 2014 at 5:46 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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The trustee has always been the legal owner of the trust. However, the beneficial owners are the beneficiaries under the trust and the trustee has the obligation to run the trust for the benefit of the beneficiaries.
Answered on Mar 20th, 2014 at 5:46 PM
2 Awards
Your question does not make any sense and what you have cited is not the law. I suggest you contact an attorney for a free consultation to get an answer to exactly what your question is.
Answered on Mar 20th, 2014 at 3:56 PM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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There is no such law. You can transfer an asset to the trust or to the named trustee on behalf of the trust. If given to the individual in their own name without reference to their office, as trustee, or to the trust then the transfer is to the individual. If there is ambiguity in the transaction then a court will have to decide who the intended recipient was, the individual or the trust.
Answered on Mar 20th, 2014 at 3:56 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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There is no such law. If the trustee is referenced as trustee, then the trust does not need to be named. The identification as trustee means that the person is not receiving the asset in his or her individual capacity, but as trustee for the trust. Naming the trust is common, for identification purposes, but it is not required.
Answered on Mar 20th, 2014 at 3:55 PM