The land trust is an intervivos title holding trust. The trustee is the one holding the title. By assigning the interest the trust is not void or compromised in any way. In a will the wife could be named as beneficiary and avoid probate because the real property is now personal property. Personal property does not normally need to go through the probate proccess for a change of ownership. An appropriate beneficiary would be the living trust of the individual and it would define how the interest be devided.
When using a Land Trust, if someone assigns all their beneficial interests to a new person does this void the original trust agreement. Wouldnt this be necessary if the original had used trust to avoid probate and named their wife as beneficary upon their death etc.? Would you make a new trust agreement?
Mart
Posted by Bill Gatten on November 09, 2000 at 16:52:22:
Mart,
Can’t add much to what Bud said, but do understand that what makes the land trust unique is that the trustee is the legal AND equitable title holder, and is responsible to the beneficiaries to the extent of their power to direct. And such direction must be mutual among co-beneficiaries unless relinquished earlier by a Power of Attorney or by an Assignment of Power of Direction. Therefore, no matter what one co-beneficiary does (including getting dead), it won?t affect the other beneficiary, because neither of them owns any part of the property or its title anyway: only a personal property interest in the trust in which the trustee holds all title interest.
In the event of death or incapacity of a beneficiary, the decedent?s (or incapacitated party’s) interest, along with his or her responsibilities in the trust, inure to his or her heirs or estate. And life goes on (obla dee obla da).