Do trusts work across state lines?
If your will and revocable trusts were properly executed in accordance with the laws of one state, they are usually valid in other states. Your heirs might need to rely on the laws of another state to establish the validity of your will and trusts, and opinions from attorneys in two separate states may be required.
Where does the trustee of a trust live?
During the year at issue, the trustee was a Texas resident and the trusts sold their interests in the S corporations. Three of the four trust beneficiaries resided outside of Minnesota.
What happens to property sold by State trustees?
Funds from the sale of such properties are used for the benefit of our clients or distributed to beneficiaries when required. State Trustees Property Services team will oversee the sale process and engage local real estate agents to sell the property on behalf of our clients.
Can you transfer out of state property into a living trust?
If your trust is a revocable living trust, transferring your out of state property into the trust shouldn’t create a problem; however, if you created an irrevocable living trust you cannot get that property back once it has been transferred. The second consideration is the impact the transfer might have on your tax obligations.
Who are the real estate agents for State trustees?
State Trustees Property Services team will oversee the sale process and engage local real estate agents to sell the property on behalf of our clients. These agents are selected from our panel of preferred real estate agents and appointment to the panel is made only after a rigorous selection process.
During the year at issue, the trustee was a Texas resident and the trusts sold their interests in the S corporations. Three of the four trust beneficiaries resided outside of Minnesota.
How does a trust work in a state?
Let us discuss the issues. Trusts are contracts. Like all contracts trusts must declare which state’s laws govern the administration, interpretation and validity of the trust instrument. Typically, the laws of the state where the trust is established are initially chosen.
Can a trustee in Maine have jurisdiction in Arizona?
If the trustee lives in another state (and the trust is administered in that state), then jurisdiction probably lies in that state. Of course, a Maine (or Montana) trustee could consent to the Arizona courts’ jurisdiction, but it can not be forced.
Is the grantor of a trust a Minnesota resident?
Also, although the grantor was a Minnesota resident when the trust became irrevocable and a Minnesota law firm prepared the trust, that was years earlier. Such acts cannot bind the trust forever to be subject to state taxing jurisdiction.