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After removal as Trustee

After removal as Trustee

Postby InNeedOfHelp » Thu Jul 21, 2016 9:38 am

Hi all

Hope everyone is well and enjoying this fine weather, well at least the 2 days we had!

I have a couple of questions. If someone was a Trustee for an Estate until minors reached a certain age and during that period had properties/mortgages on behalf of the Trust in their names is there anyway that their names can be removed from the properties/mortgages once they are no longer a Trustee? Especially if the beneficiaries were refusing to assist with this, could a Court order this and under what power?

Thanks for reading

P
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Re: After removal as Trustee

Postby InNeedOfHelp » Thu Jul 21, 2016 12:08 pm

Sorry the above should read removed from the property tile deeds/mortgages once they are no longer a Trustee?
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Re: After removal as Trustee

Postby atticus » Thu Jul 21, 2016 5:41 pm

This needs to be unpicked.

Why are there mortgages? Has money been borrowed? If so, is it to be repaid? If not, will the lender and the person to whom title is to be transferred both agree to a transfer of the land subject to the mortgage?
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Re: After removal as Trustee

Postby dls » Thu Jul 21, 2016 9:01 pm

As Atti says there is a fair bit to unpick.

There will be an answer, but just what the answer is is buried under much undisclosed detail.
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Re: After removal as Trustee

Postby InNeedOfHelp » Fri Jul 22, 2016 2:12 pm

Thank you for your replies.

Say the property was left by the deceased with mortgage and that was transferred into the names of the trustees, remortgage to refurbish that and raise deposit for another property, which again was mortgaged. However these were personal mortgages in names of the Trustees and not the Trust as such.

Pretty sure the lender would not agree to any transfer, hence why I ask is there anyway the ex'-trustee can force the issue to get their name removed, even by the Court ordering the sale of the properties if need be.
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Re: After removal as Trustee

Postby dls » Sat Jul 23, 2016 5:20 pm

There is a considerable risk of such actions being seen not as action within the trust.

we have had discussions here several times about the dangers of trustees doing such things without proper formal authority. If they have got it wrong then they have made themselves finally responsible.

If what they did was done properly then they are likely to be personally responsible for the debts subject to a right of re-imbursement from the estate. That may still be a big if.

They should take proper advice on the actual situation form someone who has been given a proper history, and can check the documents.
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