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Can A Trustee Sell Trust Property?
As a beneficiary of a trust, you are set to inherit assets as intended by the grantor. But what if the trustee decides to sell off some of the trust’s property?
Beyond risking your inheritance, these actions may be considered “self-dealing.” Stick with us to learn if a trustee is allowed to sell trust property and under what circumstances.
A Trustee Is Likely Permitted to Sell Trust Property
A trustee is permitted to sell trust property under certain circumstances. First, the trust documents must give the authority to do so, particularly with real estate holdings, and second, they must act in good faith for the benefit of the heirs, but that is not all. A trustee is responsible for following their fiduciary duties by getting an appraisal, selling the property for fair market value, filing the proper paperwork, keeping beneficiaries informed, and seeking their input.
What Should I Do if I Believe the Trustee Did Not Follow the Rules?
If you believe a trustee sold trust property improperly, you should act quickly. Gather as much evidence as you are able, including trust documents, financial statements, and any related correspondence between you and the trustee. Use this information to create a timeline of events, and note any discrepancies, unauthorized withdrawals, or unexplained losses.
As a beneficiary, you are entitled to know how assets are managed, so it is within your legal rights to demand a formal accounting. Now, reach out to your Hackard Law attorney, who is skilled in trust litigation. We would explain your rights, clarify the legal process for challenging the trustee’s actions, and assist you in making your formal demands.
Take Legal Action Against a Trustee When Necessary
Unfortunately, not all disagreements between trustees and beneficiaries are settled out of court. If necessary, we could petition the court to remove the trustee for breaching their fiduciary duty, order them to return stolen funds or pay damages, and appoint a new trustee. If the sale has not happened yet, it may be possible to get a court order to stop it, especially if it is for an amount that is less than fair market value.
Reach Out To Learn if Your Trustee Was Allowed To Sell Trust Property
Now that you have a basic understanding about when a trustee is allowed to sell trust property, reach out to the trust litigation attorney at Hackard Law to discuss your specific situation. Whether you are concerned that they did not follow trust rules or they failed to get fair market value for the property, you are right to want to investigate further. We offer a standard contingency fee, so you do not have to risk legal fees on a frivolous lawsuit.