Legal Question in Wills and Trusts in Oregon

Re: Selling property in a Family Trust

A sale of property from a trust can be made only by the trustee named in the trust, or by the successor trustee named in the trust (if the original trustee is no longer living). Also, the trustee must comply with the instructions of the trust, called the terms of the trust. If the terms of the trust permit this sale of property, or if the trust gives the trustee wide discretion in deciding what to do, then this sale can occur. Normally, however, the proceeds of the sale of the property will need to either be spend on the beneficiaries, or placed back into a trust account, or used to purchase replacement trust assets.

If the terms of the trust do not permit this sale of property, and if the trustee is not given discretion, then the trustee may be violating the terms of the trust. (I am assuming that the widow is a successor trustee named in the trust. If she is not, then there is a trust violation.)

Only the beneficiaries (ie. the children) have legal standing to sue, but since they are minors, then an adult will need to file a petition to be appointed to represent the children's interest in such a lawsuit.

The bottom line, however, is that one needs to look at the trust document to see if the actions of the trustee are proper.

Hope this information helps.