Expert: Dr. Joseph de Beauchamp - 5/18/2004

Question
I am the trustee of my fathers living trust. He is alive and well. His trust consist of the house my husband and I have been living in for 7 years, I also have 4 brothers and 1 sister who are beneficiaries as well. My question is what is the first thing I have to do once my father passes?

In his trust it states  "On the settlor's death, the trustee shall distribute the entire undistributed principle and income of the trust estate as follows: and then it list each of us with a percentage. Do I have to sell the house right away?  Can he change the wording in the trust, to say something about when to sell the house, so I am not booted out. So am not real sure of what my responsibilites will be as far as the house is concerned.

Answer
Your father could admend the trust to be more clear. It is a good time to do this. You can also form agreements with the other kids on how to divide and sell the property after the trust transfers. This could be done with separate contract between your siblings. Either way works. It would be better to help your father change the wording now, or transfer the title to all of you now, before death, and then you kids make a agreement the terms you agree upon.

Dr. de Beauchamp