Legal question - inheriting lease on barn as a leassee??
Okay, I have a $20 bet going on this
My county has stables on county land. It apparently is rented out in 20 yr contracts. It used to be done by license, where the renter got a license to operate and county maintained stables. Now, apparently it's a lease, where lessee maintains the property (and has "not open to the public" )signs. Anyway, I was told from the lessee that the lease was in a trust fund for their children.
What? The manager said, "we have the twenty yr contract with the option for the next 20 yrs".
Is it possible to give a lease to your children through a trust, on a lease with the government (where you are the lessee, not the leasor)?
To me, there is no way since bidding on a rental agreement with the state must be subject to a request for bid, hence there is no guarantee you will have the lease in the next go round.
And this is not an apartment, so I would think those tenant/landlord laws don't apply.
So, you legal eagles, do I have to shell out $20 because I lost the bet?
Well, it's been awhile since I took wills and trusts, and I am technically retired from the practice of law, but...
It would depend on the terms of the current contract. If the contract does include the right of first refusal on the subsequent 20 year contract (as the manager seemed to indicate), and the contract allows that right to be assigned, I would think that it could be willed to someone else.
If each subsequent contract has to be rebid to the public (as you seem to indicate that it does) then no, the next contract could not be willed to someone else.
Basically, the question comes down to "does the current lessee have a possessory interest in the subsequent contract?"
The lease is in a trust for the kids? And the lessee is presently alive? Am I correct?
The way (basic) trusts work is that a trustee has legal title to property held for the benefit of another. So what would happen in an intervivos trust, (and with out seeing the terms of the trust I'm taking a stab in the dark...) is that the lessee (setlor of the trust) places the lease in a trust for the benefit of the kids. Kiddos get the income or equity or whatever from the lease. Trustee has legal title, kids have equitable interest.
I see no reason why this would not work for a long term lease. When the lease ends, it is no longer property of the trust.