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Trust Transfer of Permit Upon Death of Trustees
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12/29/2019 at 8:52:37 PM GMT
Posts: 2
Trust Transfer of Permit Upon Death of Trustees
Has anybody transferred ownership under a trust established to circumvent the ownership transfer fees? My parents established the trust and both have now passed way. As the personal representative of the estate, I need to know what forms the Forest Service requires in Colorado to change the name of the trustee(s) on the Forest Service Special Use Permit, issued in the name of the trust.

12/30/2019 at 4:23:47 PM GMT
Posts: 24
Transferring to a trust does not circumvent all transfer fees. If you are moving the ownership into a trust, the Forest Service will charge a transfer fee. Also, if you change the trustee, because it is a legal change of ownership (the law recognizes the trustee as the owner), then there is a transfer fee. However, I have heard of a case where each successive trustee was named into the trust at the outset and in that case, the Forest Service has not charged a transfer fee to change from one trustee to the next designated trustee in the current trust. This is not common and it is unclear if all jurisdictions will treat this kind of pre-determined trustee assignment in the same way.

12/30/2019 at 5:44:37 PM GMT
Posts: 99
As stated above, as a general rule, the USFS considers a change of trustee name as a change of ownership, which is subject to a transfer fee.  I recommend you consult with the attorney who drafted the existing trust to review the specific terms of your cabin trust and the process for replacing the original trustee(s). The standard form used by the USFS to issue a permit in a new name is attached below.

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Last edited Monday, December 30, 2019
1/14/2020 at 8:22:37 PM GMT
Posts: 2
In speaking with my parents before their deaths, I was under the impression that was the purpose of having the special use permit issued in a trust name. If that is not the case, what is purpose of establishing a trust and getting the USFS special use permit issued in the name of the trust? The trust was established specifically for this cabin and the special use permit. Any help or information you can supply is greatly appreciated!

Last edited Sunday, January 19, 2020
1/19/2020 at 7:00:47 PM GMT
Posts: 99
Because cabin trusts are typically part of an overall estate planning process by a cabin owner, reasons for placing a cabin in a trust will vary by personal circumstances.  That said, a common reason for placing a cabin in a trust is to bypass the probate process when a cabin owner passes away.  Because probate varies by state law, owners from some states (where probate is more complex or expensive) are more motivated than those in other states to bypass probate. Another common reason for using a trust as an ownership entity is when a cabin is owned by multiple parties to define the rights and responsibilities of the parties. I'll also mention the USFS is not entirely consistent regarding their review and acceptance of cabin trust terms, thus the need to discuss your specific cabin trust terms with the attorney who created it. For more information, please reference the Cabin Trusts / Multi-Ownership page under the Resources menu.

Last edited Sunday, January 19, 2020