Can One Trustee Sell a House Without the Other’s Permission in a Trust in the USA?

Question from Brenda, Can One Trustee Sell a House Without the Other’s Permission in a Trust in the USA?

Answer from AI:

In general, the ability of a trustee to sell a property held in a trust without the consent of other trustees or beneficiaries depends on the terms of the trust agreement and the laws of the state where the trust is established.

Trustee Powers and Trust Agreement

Typically, the trust agreement outlines the powers and duties of the trustee(s). If the trust agreement grants a trustee the power to sell trust property, then that trustee may be able to sell the property without the consent of other trustees or beneficiaries. However, if the trust agreement requires the consent of all trustees or beneficiaries for such actions, then one trustee cannot sell the property without obtaining the necessary consent.

State Laws

State laws also play a crucial role. Some states may require the unanimous consent of all trustees for major decisions like selling real estate, while others may allow a majority decision.

Fiduciary Duty

Regardless of the trust agreement or state laws, trustees have a fiduciary duty to act in the best interest of the beneficiaries. This means that even if a trustee has the power to sell a property, they must do so in a way that benefits the beneficiaries. If a trustee breaches this duty, they could be held legally responsible.

It’s important to note that this is a general explanation and the specifics can vary greatly depending on the details of the trust agreement and the laws of the state. Therefore, it’s recommended to consult with a legal professional for personalized advice.

Here are some general steps one might take:

1. Review the trust agreement: The trust agreement should be the first place to look for information about the powers and duties of the trustees.
2. Consult state laws: If the trust agreement is unclear, consult the laws of the state where the trust is established.
3. Seek legal advice: If there are still questions or concerns, consult with a legal professional.

For more information, you can refer to the Legal Information Institute’s page on Trusts and Estates or the American Bar Association’s resources on Real Property, Trust and Estate Law.