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Ely
Ely, Counselor at Law
Category: Estate Law
Satisfied Customers: 100966
Experience:  Fully licensed attorney in Texas in private practice.
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In an irrevocable trust.... When the grantor grants the property

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In an irrevocable trust....
When the grantor grants the property to the trust do they grant it directly to the trust or to the trustee? Does it matter?
Hello friend. My name is XXXXX XXXXX welcome to JustAnswer. Please note: (1) this is general information only, not legal advice, and, (2) there may be a slight delay between your follow ups and my replies.

They grant is directly to the trust, not the trustee.

Yes, it matters for two reasons:

1) If the trustee is a third party, they can possibly take advantage of the position and siphon off the assets of the trust, harming the beneficiary. The beneficiary can then ask the Court to have the trustee removed and another appointed if the trustee attempts to do this. In other words, the trustee position may be changed; and

2) The assets in the trust belong to the trust, and not the trustee, or the beneficiary. As such, the assets are protected in most cases if the trustee or the beneficiary become the target of a lawsuit, for example.

I hope this helps and clarifies.

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Customer: replied 3 years ago.


If they grant to "personX as the trustee of the trust" who technically owns the property.

George,

Thank you for your reply.

You state:

If they grant to "personX as the trustee of the trust" who technically owns the property...

...I do not quite understand what you are asking - if they do, then what, exactly? Or was your question cut off? Can you please rephrase?
Customer: replied 3 years ago.

On the grant deed.


When conveying real property a trust, is it an acceptable practice to grant to "person-x as the trustee of the trust"? Or should the granting clause read ...grantor grants to "trust".


 


If they granted to the "person-x as the trustee" of the trust who technically owns the property?

George,

Ah, thank you for your clarification.

When conveying real estate property into a trust, the common and accepted way is to state that the property is "to TRUST X." That is it. So neither the trustee or the beneficiary are mentioned in the deed to the trust, unless it is a living trust.

However, if the grant is to "person-x as the trustee," the trust is STILL the owner, not person-x trustee. The person-x trustee is merely seen as the TRUSTEE holder for the trust, and not the true owner.

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