How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Barrister Your Own Question
Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 34315
Experience:  16 years real estate, Realtor. Landlord 26 years
19958803
Type Your Real Estate Law Question Here...
Barrister is online now
A new question is answered every 9 seconds

My dad assigned the Lessee of the Hunting Camp that resides

Customer Question

My dad assigned the Lessee of the Hunting Camp that resides on the Trust Estate as the Sole Trustee of his Trust. The Trust will not terminate for 25 years due to business purposes. We need to amend and renew his lease. Can the heirs be the Lessor on his renewal lease since we are the beneficiaries?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Barrister replied 1 year ago.

Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.

.

Can you tell me if the Trust actually owns the hunting camp in its name?

.

And just to be clear...father made the tenant the trustee of his trust?

.

And it is necessary to amend the tenant's lease for some reason?

.

.

thanks

Barrister

Customer: replied 1 year ago.
Hello Barrister
The hunting camp entity is I owned by the lessee, separate and apart from the trust . The land is part of the trust.
Yes, my father appointed the lessee of the Hunting camp the Trustee of his trust upon his death.
Not sure how to answer your question regarding amending the lease. There isn't an clause in it that states that it can't be amended if that is what you are asking.
Customer: replied 1 year ago.
The trust consists of my fathers homestead, the hunting camp, and 330 acres. The trust states that it is to be ran as a business for 25 years. The business is timber harvesting and hunting. The trust states that the Trustee is directed to manage the Trust for long term income and multiple use, including leasing the hunting rights and any mineral interests and the production of timber income.
Customer: replied 1 year ago.
still there
Expert:  Barrister replied 1 year ago.

Just a second..

Customer: replied 1 year ago.
ok
Expert:  Barrister replied 1 year ago.

Ok, the way this will go legally is that if the lessee is Hunting Camp, Inc. (HC) and the trust owns the actual land, then the trust is the landlord. So the trustee of the trust is the agent for the trust and would be the one who would be responsible for amending any lease with HC if necessary.

.

But here, the landlord, (i.e. the trust) and the lessee (HC) are essentially the same entity since HC is the trustee of the trust. So the trustee of the trust would then make any amendment to the lease that is necessary and sign off as trustee and then that same person would also sign off on the lease on behalf of HC as its agent as well.

.

I don't particularly care for this arrangement because there should be an independent party in charge of the trust to ensure that the lessee is doing what it is supposed to do..

.

The beneficiaries really don't have anything to do with the property other than having a right to eventually inherit it once the trust dissolves.

.

So to answer your question directly, no, the beneficiaries couldn't amend the lease as they have no legal standing to do so. Only the trustee of the trust that owns the underlying property could make amendments to the lease and then only with the agreement of the lessee, HC.

.

Now, if the trustee is not managing the property properly or is harming the beneficiaries interests, they can act by filing a lawsuit for "waste" and breach of fiduciary duty and seek to have the trustee removed and replaced by someone else.

.

.

thanks

Barrister

Customer: replied 1 year ago.
Thanks, ***** ***** my initial thought, but it didn't sound right with the same person being both the Lessor and the Lessee.
Expert:  Barrister replied 1 year ago.

You are very welcome. And yes, it is strange and unusual for the landlord and lessee to essentially be alter egos of the same entity. If the lessee violates the lease, they really aren't going to sue themselves.... So I would suggest that if possible, father change this so as to appoint one of the children as the trustee to supervise the trust.

.

If you feel your original question and any related follow ups have been answered, I would very much appreciate a positive rating on the answer I have provided so I receive credit for my work. If you have a new question the JustAnswer folks require that you start a new question page, but you can request me by putting "For Barrister" in the caption and they will get it to me.

.

.

thanks

Barrister