There are three of us who were left an equal share of a house that is in a family trust only under my dad's name (the house was separate property). The 2nd wife lives in the house now she is not on the deed or trust.
1 Can she just decide to sell the house and take the proceeds and buy a new house with it? 2. can she sell the house with our agreement and once sold, give us our share to buy us out.
3. Could she just buy us out now if we agreed so then she can be 100% owner?
House is in Nevada
1 Answer from Attorneys
The place to begin the search is in the trust, itself. If it does not specifically state the property must be sold and the proceeds distributed, the beneficiaries - in consultation with the successor trustee - could agree to whatever they can agree to do. If the house was left to the 3 named beneficiaries, she can hardly just sell it and pocket the proceeds. Even if she is the successor trustee, she cannot change anything the trust directs to be done, as it became irrevocable upon your father's passing. She is legally bound to the directives within the trust, and it is the other beneficiaries who hold her to account for those tasks.
My suggestion would be to sit down with all 3 beneficiaries (and the successor trustee, if he/she is not one of the 3) and make clear what everyone's wishes are. She is living there at the "expense" of the other two benes, as she is likely not paying them for their shares of ownership to continue enjoying the house. The trust directs the course of action, and if that is to sell the house, the successor trustee must inform her that she cannot just continue to live there and fail to honor your father's intent. If the decision is for her to buy out the other two, and everyone agrees to that, the next step is for her to qualify for financing, take out a mortgage for 2/3 the value of the house and pay the other two off their fair share of their inheritance.
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