[WSBAPT] title to unconveyed real estate when trust is dissolved

[Philip N. Jones]

I have always understood that a trust continues to exist as long as it holds an asset, which is consistent with what Eric said.  But if litigation is started, I would not sue the trust.  I believe that the trust cannot be sued.  You have to sue the trustee.  But the bottom line is that the property will end up in the hands of the beneficiaries, but only after the trustee signs a deed.
Phil Jones

Philip N. Jones
Duffy Kekel LLP
900 S.W. Fifth Ave. Suite 2500
Portland, OR 97204
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
(503) 226-1371 - office
(503) 853-1482 - cell
(503) 226-3574 - fax

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Eric Nelsen
Sent: Tuesday, July 6, 2021 2:29 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] title to unconveyed real estate when trust is dissolved

My ancient Am.Jur. (copyright 1945) says that when a trust "terminates," full legal and equitable title in trust property instantly vests in the beneficiary, "even though it remains for the trustee to execute a conveyance or turn over possession of the trust property to them." So the practical issue might be, how to deal with the title record.

If you want a trustee to execute a deed, I would argue that the trustee can still act--the trustee has not fully discharged her/his duty and a deed confirming transfer of title is still within the trustee's power. While a corporation can dissolve and terminate and its corporate officers lose power to act, I don't think a trust works in the same way; a trustee isn't done until all ministerial acts are completed. If trustee has died and there's no named successor, RCW 11.98.039<https://app.leg.wa.gov/RCW/default.aspx?cite=11.98&full=true#11.98.039> kicks in to determine who can or should be appointed.

Alternatively, it might be possible to quiet title in the beneficiary by naming the trust as a defendant, or maybe get a title insurance company to insure around the gap in the deed chain.

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

Covid-19 Update - All attorneys are working remotely during regular business hours and are available via email and by phone. Videoconferencing also is available. Signing of estate planning documents can be completed and will be handled on a case-by-case basis. Please direct mail and deliveries to the Seattle office.

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Rod Harmon
Sent: Tuesday, July 6, 2021 2:03 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] title to unconveyed real estate when trust is dissolved

Trust conveyed away most of its real estate and its other assets but forgot about one parcel.
Trust dissolved.
Who owns the forgotten real estate?

Rod Harmon

RODNEY T. HARMON
       Attorney at Law
         P.O. Box 1066
      Bothell, WA   98041
     Tel:   (425) 402-7800
     Fax:  (425) 458-9096
    www.rodharmon.com<http://www.rodharmon.com>
   rodharmon at msn.com<mailto:rodharmon at msn.com>



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