Legal Question in Real Estate Law in New Hampshire
If one of the beneficiaries of a trust is buying out the other beneficiaries, is the percentage owed to the people being bought out, based on the selling price of the (in this case) house, or the price of the house minus what's due on the mortgage? The person buying out the other beneficiaries has lived in the house since it was built, as a beneficiary, not a trustee.
1 Answer from Attorneys
A review of the trust would be the starting point. However, as a general rule, the value of the trust would be the equity in the property held in the trust. This assumes that the purchaser is responsible for all of the debt relating to the property after the date of transfer. If all beneficiaries agreed that one of them would live in the house without rent, then all would be deemed to have accepted the results of the agreement. The best way to sort out the rights and responsibilities would be to hire an attorney with experience in this area of the law. The end result should be agreeable by all beneficiaries.