Yes, a testamentary trust absolutely can restrict the sale of inherited real estate, and this is a common estate planning tool used by attorneys like Steve Bliss to protect assets and fulfill a client’s wishes beyond their lifetime.
What are the benefits of a testamentary trust?
A testamentary trust is created *within* a will and only comes into effect *after* the grantor’s death. This differs from a living or inter vivos trust, which is established during the grantor’s life. The primary benefit of including provisions restricting the sale of real estate within a testamentary trust is asset protection and ensuring long-term financial security for beneficiaries. For example, a grandparent might want to ensure a vacation home remains in the family for generations. Approximately 33% of estates exceeding $1 million utilize testamentary trusts to manage and protect assets post-mortem, illustrating their increasing popularity. These restrictions can prevent beneficiaries from making impulsive decisions that could deplete the inheritance, such as selling a property quickly due to immediate financial needs.
How do these restrictions actually work?
Restrictions are typically outlined explicitly in the trust document itself. These might include requirements for unanimous consent from all beneficiaries before a sale can occur, stipulations that the property must be offered to other beneficiaries first at fair market value, or a defined period of time that must pass before a sale is permitted. A common clause could state that the property cannot be sold for a minimum of 20 years after the grantor’s death. The trust document will also outline who has the authority to manage the property – a trustee – and their responsibilities regarding maintenance, repairs, and the collection of rental income if applicable. According to the American Bar Association, approximately 60% of testamentary trusts include clauses concerning the management and potential sale of real estate, highlighting the importance of these provisions.
I once knew a family where things went terribly wrong…
Old Man Hemlock was a stubborn but loving grandfather who left his beachfront property in trust for his two grandsons. He didn’t bother with a detailed trust document, figuring they’d “do the right thing.” After his passing, the grandsons, who had never been close, immediately began arguing about what to do with the property. One wanted to sell it for a quick profit to start a business, while the other wanted to keep it as a family retreat. The lack of clear instructions in the trust, essentially a will with a tacked-on trust clause, led to a protracted legal battle, racking up significant legal fees and ultimately forcing the sale of the property at a reduced price. The emotional toll on the family was immense, and they lost both the property and their relationship with each other. It was a heartbreaking situation stemming from the absence of proper estate planning.
But there was another family where everything went smoothly…
The Abernathy’s consulted with Steve Bliss to create a testamentary trust specifically designed to protect their family’s historic farm. The trust stipulated that the farm could not be sold for 50 years after their passing, and that a designated family member, with experience in agriculture, would manage the property. It also included a clause requiring unanimous consent from all living descendants before any changes to the property could be made. Years later, the family successfully navigated a challenging economic climate, maintaining the farm’s profitability and preserving it for future generations. The clear instructions within the trust, coupled with responsible trusteeship, ensured that the Abernathy’s legacy lived on, providing both financial security and a sense of family heritage. They regularly gathered at the farm, creating memories and strengthening their bonds, all thanks to a well-crafted testamentary trust.
Ultimately, a testamentary trust provides a powerful mechanism for controlling the disposition of inherited real estate, ensuring that a client’s wishes are honored and that beneficiaries are protected from impulsive decisions or financial hardship.
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
- estate planning
- bankruptcy attorney
- wills
- family trust
- irrevocable trust
- living trust
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “What documents are essential for a basic estate plan?” Or “Can an executor be removed during probate?” or “Can a living trust help avoid estate disputes? and even: “Can I get a mortgage after filing for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.