Legal Question in Wills and Trusts in California
Two married people (Foster and Pauline Williams) bought a mausoleum crypt from a San Diego cemetery in 1968.They both died 10 years later and were cremated. The son, John Williams, was named as successor Trustee in the Declaration of Trust. (Copy in hand). The family trust states that if John Williams resigns or refuses to act as trustee then another family member (Leon Williams) shall be appointed as sole successor trustee. John Williams decided to sell the crypt with assistance from a cemetery broker. A new buyer has been found. The cemetery says that they now have a house rule that states that all possible successor trustees must approve of the sale in writing, including their notarized signatures. Leon Williams has been away to parts unknown for 6 years. We were told by the cemetery management that this new ruling is now in effect in all of their 550 cemeteries. The cemetery said that the new buyer found by the cemetery broker can purchase a similar crypt directly from the cemetery at the same price he was going to pay the cemetery broker.
2 Answers from Attorneys
When the cemetry sold the space to them it was subject to all the terms stated in the contract. You need to check as to whether there is anything in the sales contract allowing the cemetry to block a resale of the space. If not, you can argue that they can impose the rule for future purchases from the cemetry but not as to people who have already purchased, who had the expectation that they could resell the space. Ther terms existing in the contract determine what can be done now and they can not impose upon a physical space no longer owned or controlled by them subsequent rules restricting alienation/resale. If the original termls allow for the enforcemet of future house rules, you can argue that the above still applies but also they are creating a restraint of trade, and the rule is non-sensible. Until the appointed trustee refuses to serve, the successor trustee has no power or authority; getting hls approval is meaningless. If all the trustees refused to or could not serve then the State would take over; does the Governor have to sign also?
I disagree with Mr. Shers. The cemetary is entitled to take reasonable steps to assure that a transaction is actually authorized. It is not up to the cemetary to search all 50 states for the past thirty years to see if the purported current trustee has not been removed by a court proceeding, or more troubling yet, has resigned but now regrets the move and is trying to sell property of the trust. The only way to do that is to have the named successor trustees sign off on the deal, or obtain a court authorization of the transaction.
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