What law in a living trust requires property evaluation every three years? 19 Answers as of October 03, 2012

My wife and brother-in-law are named in their parents living trust. They inherited properties, which apparently require a property evaluation every three years.

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Martinson & Beason, PC
Martinson & Beason, PC | Douglas C Martinson II
There is no law or reason to evaluate the property every 3 years or at all.
Answer Applies to: Alabama
Replied: 10/3/2012
Atlas and Hudon, LLP | Douglas Mackubin Thomas
Connecticut General Statutes Section 45a-177 requires that periodic accountings (at least every 3 years) be submitted to the Probate Court by trustees (and other named fiduciaries). The report is intended to provide a tally as to the current value of assets contained in the trust and it must be signed under penalty of false statement. Upon receipt, the court sends out notice to parties that may be interested in the accounting report offering them an opportunity to examine it. Upon receipt of a final accounting, or under certain circumstances involving periodic accountings, hearings may be held to determine whether the accounting should be allowed. You should contact an attorney familiar with probate matters should you require additional information.
Answer Applies to: Connecticut
Replied: 9/19/2012
Law Offices of Gerald A. Bagazinski
Law Offices of Gerald A. Bagazinski | Gerald A. Bagazinski
It is probably required by the terms of the trust. Consult and attorney for more information.
Answer Applies to: Michigan
Replied: 9/19/2012
Frederick & Frederick PLC | James P Frederick
There is no law requiring this, that I am aware of, for trusts. There IS a requirement that conservatorship estates be formally reviewed by the court, every three years. There is nothing similar with trusts. If a trust is irrevocable, then the trustees are required to account to the beneficiaries, at least once a year. This would not involve or require any appraisal or re-appraisal of assets.
Answer Applies to: Michigan
Replied: 9/19/2012
Grant Morris Dodds | Mark Dodds
If there is a requirement that the property be "evaluated" every three years, that is a provision which the beneficiaries' parents, the creators of the trust, chose to include. There is no legal requirement that property be either valued every three years or be evaluated every three years. If the trust does require "evaluation" every three years, this may have been added so that the beneficiaries of the trust will evaluate the return on investment from the property, to decide whether it should be retained or sold.
Answer Applies to: Nevada
Replied: 9/19/2012
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    It sounds like that is a provision of the Trust for some reason, I would have to review the documents to form an opinion.
    Answer Applies to: Michigan
    Replied: 9/19/2012
    Powell Potter PLLC
    Powell Potter PLLC | Shawn Potter
    This requirement is likely stated in the trust documents. Review the trust documents with a trusted tax advisor or attorney.
    Answer Applies to: Utah
    Replied: 9/19/2012
    Law Offices of Charles R. Perry
    Law Offices of Charles R. Perry | Charles R. Perry
    There is no law that requires such an evaluation. However, there may be something connected to the terms of the trust, the tax treatment of the assets, or the way that distributions or made, that require these evaluations or make them advisable.
    Answer Applies to: California
    Replied: 9/19/2012
    O'Keefe Legal Services, L.L.C.
    O'Keefe Legal Services, L.L.C. | Sean P. O'Keefe
    I am unaware of a Maryland rule specifically related to living trust property evaluation every three years, but in Maryland real property is assessed by the State Dept. of Assessments and Taxation for property tax purposes every three years (whether or not held in a living trust, inherited, etc.). If there is a "law in a living trust" for the requirement you mention, then you will have to examine the particular living trust document to determine the instrument's governing provisions.
    Answer Applies to: Maryland
    Replied: 9/19/2012
    Richard E. Damon, PC | Richard E. Damon
    If property is still being held in a trust that has become irrevocable because of the death of the parents, there are circumstances in which the court (or the trust itself) requires accountings. That might involve assessing the property periodically.
    Answer Applies to: California
    Replied: 9/19/2012
    Gates' Law, PLLC | Thomas E. Gates
    The directions in the Trust dictate the requirement to have the property be evaluation every three years.
    Answer Applies to: Washington
    Replied: 9/19/2012
    Law Office Of Victor Waid
    Law Office Of Victor Waid | Victor Waid
    You would have to look at the provisions of the living trust as to the requirement of valuation of assets every three years, the requirement may be required by the IRS rules if the living trust is setup a certain way. I suggest you see a tax attorney or a CPA after you have the living trust in your possession so the experts can evaluate the terms of the trust.
    Answer Applies to: California
    Replied: 9/19/2012
    Irsfeld, Irsfeld & Younger LLP | Norman H. Green
    No law generally requires this. It is possible that a provision of this trust requires such evaluations.
    Answer Applies to: California
    Replied: 9/19/2012
    Horn & Johnsen SC
    Horn & Johnsen SC | Dera L. Johnsen-Tracy
    In Wisconsin, there is no law requiring a re-evaluation of property every three years. However, this may be a requirement specified within the terms of the trust or there may be other state-specific requirements depending on the state in which the property is administered. The beneficiaries of the trust should discuss this matter with the attorney and accountant who are handling the administration of the trust.
    Answer Applies to: Wisconsin
    Replied: 9/19/2012
    Minor, Bandonis and Haggerty, P.C.
    Minor, Bandonis and Haggerty, P.C. | Brian Haggerty
    Who says it's required? The trust agreement could require this, but it would be unusual. Anytime somebody says "this is required," your entitled to respond "show me."
    Answer Applies to: Oregon
    Replied: 9/19/2012
    The DeRose Lawfirm | Peter J. DeRose
    The only reason that I can see would be if the property i s of such a character that its current or then value would send the estate into a situation where the trust would incur estate or death tax. I do a lot of work with farmers and I have seen that due to soaring land values and high crop prices a person owning farm land may well find that they have a taxable estate. It is wise to check, so that if an estate tax problem exists it can be resolved in some other way. If the parents are deceased then I can see no other reason and it would be common for the trust to terminate and the property be deeded to your wife and her brother, unless the trust states otherwise.
    Answer Applies to: Michigan
    Replied: 9/19/2012
    Neal M. Rimer, Esquire
    Neal M. Rimer, Esquire | Neal M. Rimer
    There is no "law" that requires a property evaluation every 3 years. There must be something in the trust that requires that. If the trust distributed the property to your wife and her brother, then outside the trust there is nothing to require an appraisal or other valuation unless the distribution to was to an entity, or an entity owned the assets, and that entities operations require the appraisal. That would only work if the entities ownership was transferred to your wife and her brother rather than the properties themselves. You, or an attorney, needs to review the documents and be able to identify if, and to what extent, there are obligations that need to be followed.
    Answer Applies to: California
    Replied: 9/19/2012
    THE BROOME LAW FIRM, LLC
    THE BROOME LAW FIRM, LLC | Barry D. Broome
    While a trust document can direct specific functions like an accounting and property valuation it is not the norm. If the trust document you are referring to requires a property valuation then the trustee should have it done. The direction must state that it is required every 3 years. A trustee may have a corpus (trust assets) valued as a part of his/her duties as a trustee.
    Answer Applies to: Georgia
    Replied: 9/19/2012
    The Law Offices of Tres A. Porter | Tres A. Porter
    I am unaware of any law, but it well could be a requirement under the terms of the trust. You should consult with an attorney and review the trust itself.
    Answer Applies to: California
    Replied: 9/19/2012
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