Hi 

 

The concept of ownership in a trust is kind of illusive.  Does the trust own the bank account or rental unit “put into the trust”?  Does the grantor (guy who created the trust and put property into the trust) own the property in the trust?  Do the beneficiaries of the trust own the property in the trust?

The answer is no on all counts.  Technically, the trustee owns the property in the trust.  I always wince a little bit when the land trust people say that you need a trustee other than yourself to be the trustee of the land trust.  When you make a third-party the trustee of your land trust (or any other trust), you just gave ownership of your property to that third party.  

Of course, the trustee is obligated to hold the property for the benefit of the beneficiaries.  The trustee holds the property under a fiduciary duty to the beneficiaries.  The fiduciary duty is a big deal.  If you understood what a fiduciary duty was, there is no way you would ever act as a trustee.  

What can the trustee do with the property she “owns”?  Can the trustee take the trust’s money and go to Montenegro?  Yep!

Usually, you act as the trustee for your living revocable trust and probably even as trustee of your land trust.  If you get sued, can they get the property from you as trustee?  All this is discussed in my new YouTube video – Who Owns the Property in a Trust?