Legal Question in Wills and Trusts in California
Trustee and Beneficiary of Real Property
I am trustee of my 91 yr old grandmothers trust and am agent in fact in her durable power of attorney. I am also the sole beneficiary of her home. My grandmother recently had to be placed in a nursing facility and will most likely not be able to return to her home. I have been responsible for managing her finances,living expenses,employing 24 hour home care for her, and maintaining her home. At this time there are a few serious and costly repairs and replacements that need to be addressed. The roof has several major leaks, at the risk of destroying her personal property, etc. Knowing that my grandmother will not be returning home and as the beneficiary of this property in the not so distant future I feel these home repair expenses should my responsibilty. My question is this. Can I, as trustee take out a small home loan on the house for these repairs in my name? With the understanding the mortgage payments would be my responsibility. Is this possible and legal? I do not feel it to be a conflict of interest or unethical.
Your Assistance is Appreciated.
2 Answers from Attorneys
Re: Trustee and Beneficiary of Real Property
You should review the trust instrument to determine what powers you have as a trustee. Generally, you have a duty to preserve trust assets. If there is no money to repair the property, you may have authority to borrow money in the name of the trust. You also might want to think about selling or renting the property. It is difficult to get more specific on advice without reviewing the trust instrument. You may want to consult an attorney to review.
Re: Trustee and Beneficiary of Real Property
Normally, the trust will dictate what you can and cannot do. However, the trustee is required to take the necessary steps to preserve the assets of the trust, and you could have liability if you did not take action. The reality is that the trust assets should bear the cost of the repairs.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
