alokkapali36: Real Estate Assets - Question & Answer

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Real Estate Assets
updated: Jan 17, 2013, 12:04 PM

By Edhat Subscriber

If a real estate property cannot be divided as indicated in a living trust, how are the assets distributed? A portion of the property is supposed to go to one particular beneficiary alone with the remainder divided equally amongst all beneficiaries upon sale. There are county laws in place preventing dividing the land parcel as indicated in the trust.

Comments in order of when they were received | (reverse order)

?COMMENT 364534	2013-01-17 12:09 PM
Contact the attorney who drew up the trust. This is a complicated matter that can't be handled through the armchair advisors here, myself included.
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?COMMENT 364535	2013-01-17 12:09 PM
Hmmm, hire an attorney/estate planner. You'll get what you pay for... free advice here is worth just that (including my 2? worth).
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?COMMENT 364539	2013-01-17 12:22 PM
The land may not be divisible but upon sale is the key in most cases. Definitely speak to a trust attorney.
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?EDHATBARBARA	2013-01-17 01:24 PM
See thread: http://www.edhat.com/site/tidbit.cfm?nid=51887
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?COMMENT 364593	2013-01-17 02:04 PM
The asset will be divided upon sale, simple as that.
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?COMMENT 364641	2013-01-17 03:46 PM
Talk to an attorney. Most likely, you'll end up with 2 options. 1) One person buys out the rest. 2) Property is sold and the money divided based on the size of the pieces described in the trust. I would suggest that the attorney who drew up this impossible trust should be responsible for covering the legal costs of making this happen. It doesn't sound like something that could have ever been implemented unless it predates the existence of local property laws. Or are you misinterpreting the trust? Does it actually say that the land is to be divided or does it say Joe Smith gets 60% of the property and Jack, Jill, June, and Jesse each get 10%? That's entirely different. That means the property gets sold, Joe gets 60%, the rest each get 10%. Or Joe buys out the others by paying them each 10% of the assessed value. Or they come to some agreement about how to use/manage the property. Talk to an attorney.
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?COMMENT 364650	2013-01-17 04:19 PM
HEY not to sound REPETITIVE but PAY for the advice of an Estate Planner who has a law degree specializing in Trusts and Wills and Estates. DUH. Because guess what? You're going to have to sell the house no matter what if you want to divvy up the $$$ that the house is worth. Otherwise, all the beneficiaries will have to agree on who buys out whom.
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?COMMENT 364721	2013-01-17 08:43 PM
Thanks for the advice. We are trying to find a lawyer. I just thought the edhat community may have experienced similar situations. Don't think your snarky reply was warranted 650.
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?COMMENT 364747	2013-01-18 06:46 AM
If the parcel can be divided, albeit not the way intended, the parties may reach an agreement that feels equitable. Otherwise, prepare for dueling appraisals of partial parcels, could get messy.
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?COMMENT 364751P	2013-01-18 06:58 AM
That eventuality should have been made clear in the trust; good luck getting it sorted out.
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