Does Trustee of Nominee Realty Trust Need Beneficiary’s Approval to Sell Real Estate?
I am the trustee for a nominee trust that holds a family home and trustee for a family trust which is listed on the schedule of beneficiaries of the nominee trust. Do I need the permission of the person who is the family trust beneficiary in order to sell the home?
Probably not. As trustee of the nominee realty trust, you cannot sell the home without the permission of its beneficiary because while called a “trust,” a nominee realty trust is really an agency agreement. You act as agent for the beneficiary. However, in this case, you serve in multiple roles, in effect, as both trustee and beneficiary of the nominee trust. As trustee of the family trust, you may direct yourself as trustee of the nominee trust to sell the property. While I haven’t seen the family trust, a typical trust would give the trustee power to act for the trust without seeking the approval of such beneficiaries.