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Updated over 7 years ago,

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3
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0
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Jan Gudell
  • Chicago, IL
0
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3
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Family Trust and Problems with Deadbeat Trustees

Jan Gudell
  • Chicago, IL
Posted

My father recenlty put a 100+ year-old two-unit rental property in a trust which includes my father, me and two siblings. The building is paid-off and in a desirable urban neighborhood, however it is in need of upgrades. One of the issues is my two siblings live in the building and are free-loading. One of them has been living in the building for many years without paying any type of rent and the other  moved in about 5 months ago and they each paid their first partial rent June, 2017. Neither are doing anything to maintain the building or contribute to its upkeep while my 70+ year old father has been providing them a free apartment and paying for property repairs and going to the property to do work himself. He should be retiring and enjoying a nice supplemental retirement income but that's not how it's turned out. It seems the building could be made into a self-sustaining rental property but not while two trustees are using it as free or nearly-free housing. How can the trust be used to change the situation so it is more equitable? Are there bylaws that a trust can adopt or incorporate to address equity? And is there some way to ensure that the two trustees who are benefiting from the free rent cannot vote to keep the status quo by force of number or split vote? It's a frustrating situation and my apologies if this is the wrong forum. 

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