Legal Question in Wills and Trusts in Massachusetts

Re: irrevocable trusts with a life estate

The person with the life estate may have the right to stop the sale, since the interest of the life estate may be dominate.

Without actually reading the trust, it is impossible to tell you whether it can be sold. However if both the current life beneficiary and the contingent beneficiaries agree, you should be able to sell the home, it probably can be sold. However, that does not mean the beneficiaries get the money. It may only mean that the money in the trust must be used to benefit the person with the life estate. Again without actually reading the trust, it is impossible to give accurate advice.

Please feel free to contact me if you have additional questions.

: irrevocable trusts with a life estate

Does this include the person with a life estate?

Re: irrevocable trusts with a life estate

Because the terms of the trust document will control what is and is not permitted, you should bring the trust, any other wills or deeds to an attorney, who will be able to assess the rights of the parties.

I am located in Quincy, and would be happy to consult you further in this matter.

Re: irrevocable trusts with a life estate

In general, notwithstanding the terms of a trust, there are ways to "break" a trust if all interested parties agree. In many cases, court approval will be sought.

Note as alluded to in other answers, the beneficiaries will typically receive the present value of their interest - so if someone has a life estate, they will not receive the full value of the trust, but only a percentage equal to the statistical value of their share (frequently based upon the age of the life beneficiary, interest rates, and current IRS tables), with the remainder beneficiaries dividing up the balance after provision for the life beneficiary.

There are additional ramifications, such as taxes and transaction costs, which need to be considered in determining the net effect of selling the real estate.

This is definitely a matter requiring consultation with an attorney and an accountant - there may be significant unforeseen consequences.

Please contact me if you would like to set up an appointment.