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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal style='margin-left:40.8pt;background:white'><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:#222222'>Dear Listmates,<o:p></o:p></span></p><p class=MsoNormal style='margin-left:40.8pt;background:white'><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:#222222'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:40.8pt;background:white'><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:#222222'>I am struggling with a contested probate issue that involves a will with two testamentary trusts. The will states: Trust A contains a house, which was solely owned by decedent, and where client (his daughter and her husband) have lived for 19 years, with their four minor children. The beneficiaries of Trust A are daughter, her husband, and their four children, and each of these people are named individually. <o:p></o:p></span></p><p class=MsoNormal style='margin-left:40.8pt;background:white'><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:#222222'>Then, there is Trust B. Trust B contains cash and a steady income stream, and the beneficiaries are 1. Trust A; and 2. Decedent’s other daughter. (the other daughter is not the problem). So, since Trust B benefits Trust A, that income is meant to pay for the mortgage and maintenance on the house in Trust A. <o:p></o:p></span></p><p class=MsoNormal style='margin-left:40.8pt;background:white'><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:#222222'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:40.8pt;background:white'><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:#222222'>The issue I am dealing with is the residence- the PR is also the trustee, and he has ignored the trust provision(s) and is letting the house be foreclosed upon, basically. Even though there is money in the estate that the will states is supposed to pay the mortgage on the house. He sued the beneficiaries of Trust A for ejectment last year, and tried to sell the house. (he didn’t succeed on that, so is just waiting for trustee’s sale)…<o:p></o:p></span></p><p class=MsoNormal style='margin-left:40.8pt;background:white'><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:#222222'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:40.8pt;background:white'><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:#222222'>Question: If an asset (like this house) is willed to a trust or an individual (and is there a difference?) and the asset (house) is subject to a debt secured by that asset, is it the estate' obligation to pay that debt as a high priority application of estate proceeds, or does the asset pass subject to that secured debt so that the beneficiary or trust must pay it? <o:p></o:p></span></p><p class=MsoNormal style='margin-left:40.8pt;background:white'><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:#222222'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:40.8pt;background:white'><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:#222222'>Also, is there any recourse for the clients (one of decedent’s children, her husband, and their four minor children, who have lived in this house for 19 years and who the decedent specifically provided for via this trust, so they can keep living there)- when the PR/Trustee has intentionally failed to make a house payment for 14 months? <o:p></o:p></span></p><p class=MsoNormal style='margin-left:40.8pt;background:white'><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:#222222'><o:p> </o:p></span></p><p class=MsoNormal style='margin-left:40.8pt;background:white'><span style='font-size:12.0pt;font-family:"Arial",sans-serif;color:#222222'>ANY help is greatly appreciated. Thank you!!<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>