Asset cannot be distributed per Living Trust

One individual (out of several beneficiaries) is supposed to receive real estate property per a Living Trust with the remainder of the estate being distributed equally. However, it is a home on agricultural land and it has since been discovered that the land cannot be divided into less than 100 acre parcels.


Since the home and partial acreage cannot be distributed per the trust, what can be done? Will the individual receive an increased share of the estate as compensation? The other beneficiaries claim the individual has no right to the property or compensation.

Comments for Asset cannot be distributed per Living Trust

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Jan 28, 2013
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Need to look to terms of trust
by: Mo Johnson

Hi, normally these sorts of contingencies are covered in a well-drafted trust. Normlly the trustee has significant discretion to fairly apportion the assets to best accomplish the intent of the trust. But, without seeing the trust itself, I can't say more. Also, different states have different laws impacting this issue.

So...you really need to take the trust in and talk to a local trust attorney.

I would first call the attorney who drafted the trust and ask him or her about it. He or she should be willing to discuss it with the trustee since he or she drafted it.


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