Frequently Asked Questions

A real estate family sees real estate as a central part of how it cares for and provides for its members over time. It is actively building and managing a portfolio of properties designed to support multiple generations, not just the current one. Rooted in strong family values and culture, the family makes investment and management decisions that reflect what matters most to them. Over time, their real estate becomes both a source of stability and a way to carry the family's story forward.

It is best to get this answered clearly and early. If the trust is validly placed on the deed, it belongs to the trust. The trust real estate asset manager has to see what the trust says about major property decisions, such as renting, sale, and repairs. If the trust gives the trustee discretion, you'll need to walk through their processes as part of the decision-making process.

Of course, ownership must be confirmed. Was the title document correct that transferred the property into the trust? Is the trust named correctly on the deed, and the trustee? Has an affidavit of change of trustee or an affidavit of death of trustee been recorded as might be appropriate? Has an attorney reviewed these documents?

As Brené Brown wrote in Dare To Lead, "Clear is kind." Grantors that provide for clear ownership and direction on real estate are being very kind to their trustees and beneficiaries.

Understanding a Trustee requires understanding a fiduciary. A fiduciary is an individual or entity that is entrusted to act on behalf of another party, known as the principal or beneficiary, with a legal and ethical obligation to act in the best interest of that other party.

The fiduciary relationship, as created by a legal agreement, involves acting in the best interest of another. It is a bundle of duties the fiduciary owes to the beneficiary. The following are some of these duties.

• A Duty of Loyalty is to act in the best interest of the beneficiary.
• A Duty of Care is to be cautious and reasonable with the beneficiary's assets.
• A Duty of Good Faith obligates the fiduciary to act transparently and ethically.
• A Duty of Confidentiality requires protecting the private interests of the beneficiary.
• A Duty of Account requires the fiduciary to keep detailed records of transactions and decisions.
• A Duty of Impartiality requires the fiduciary to treat all beneficiaries fairly, without bias.
• A Duty to Act in Accordance with the Agreement keeps the fiduciary strictly within the bounds of the governing documents.

Trust real estate is therefore restricted in its operation and opportunity by the duties and obligations of a trustee. Real estate professionals that want to work with trustees will do well to notice that a trustee may consult with experts for multiple opinions and must keep careful accounting of all decisions.