Legal Question in Wills and Trusts in Virginia
Trust
My sister & I are the only beneficiaries of a trust created by our father when he passed away. There are 4 houses left to us, 2 each. I am living in a house left specifically to me, when the trust is done. The trustee insists on charging me rent. I have been living here since 1996, and didn't pay rent to my Dad since 2000. My sister told the trustee she didn't want me to pay rent. The trust does say the trustee shall collect rent, but does not specify any amounts.
What are the trustee's obligations as far as charging rent, and what are his obligations as far as our wishes as the sole beneficiaries?
1 Answer from Attorneys
Re: Trust
The trustee's job is to insure that the terms of the trust are carried out.
If the trust contains a provision which requires the trustee to collect rent from you as the occupier of this residence, then he or she must collect the rent in order to fullfill the fiduciary duty which goes with being a trustee, even if you're unhappy about it and your sister thinks that you should not have to pay anything to live there. (Another way to look at it
is that the creator of the trust[your deceased father, apparently] decided that you should pay rent for this house after he passed on, so it's not the decision of the trustee but that of your departed father.)
Regarding what amount the trustee should charge you for the rent, fair market value would likely be an appropriate place to start with this determination unless there's a provision in the trust which provides for something different in this regard.
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