Full question:
In Indiana, does a beneficiary who received a devise of real property under a trust, have any right to have the mortgage attached to the real property paid from the trust assets--whether or not the trust instrument directs the trustee to pay the mortgage. Please include any case-law and citations.
- Category: Trusts
- Date:
- State: Indiana
Answer:
In some situations, a trustee may need to make mortgage payments to avoid foreclosure on a property. However, whether a beneficiary can require this depends on the specific facts and documents involved.
According to Indiana law, a trustee must manage trust assets prudently, considering the trust's purposes, terms, and the beneficiaries' circumstances (IC 30-4-3.5-2). This includes evaluating the need for liquidity and the overall investment strategy of the trust.
Ultimately, the right to have the mortgage paid from trust assets may depend on the trust instrument's directives and the individual circumstances of the case.
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