Full question:
What is the law in New York on majority rules in an irrevocable trust? If the trust has three trustees, can the trust be changed or dissolved if two trustees agree? (FYI : The trust does not mention majority rules). If so, New York law would prevail. (I live in Florida now but the trust was made in New York). Also, is there a statue of limitations that would make the majority rules law null and void? More information; the third trustee is no longer a US resident. Not sure if that makes a difference. I believe in some states non U.S. residents/citizens can not inherit their relative's U.S. property or U.S. money.
- Category: Trusts
- Subcategory: Revocable Trusts
- Date:
- State: Florida
Answer:
In New York, an irrevocable trust can be revoked if all parties with beneficial interests, including all trustees, agree in writing. This means that if two out of three trustees agree to change or dissolve the trust, it can be done, provided that the third trustee also consents. This is outlined in New York's Estates, Powers and Trusts Law § 7-1.9, which specifies that revocation requires written consent from all interested parties.
Additionally, if the trust does not specify rules for majority decisions, the law requires unanimous consent for changes. The fact that the third trustee is no longer a U.S. resident may complicate matters, especially regarding their ability to inherit U.S. property, but it does not change the requirement for unanimous consent to revoke the trust.
As for statutes of limitations, they generally do not nullify majority rules in trust law. However, specific legal actions regarding the trust may have their own time limits, so it’s advisable to consult a legal expert for your situation.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.