Hi there. Your situation raises several important legal issues. From the information you provided, we have assumed that the land is held on trust. The trustee is the individual who is named on the certificate of title, and the beneficiaries under the trust are the five couples who signed the partnership agreement in 1989. Now, only three couples remain in the partnership.

You asked whether there is a better option than a trust structure. Trusts offer tax advantages and can be useful if the parties want one person to control the property or assets of a trust for the benefit of a group of individuals. If you no longer want to hold the property on trust, you would need to transfer the property from the trustee to the individual(s) who intend to hold ownership of the property directly. You should review the terms of the trust deed (i.e. the document that originally established the trust) to determine how such a transfer can occur and if there are any restrictions on this course of action.

You also asked about bequeathing your share of the property. Generally, a person can bequeath or distribute their assets to another person(s) after their death by specifying this in their will. However, if a person holds an interest in a property as a joint tenant, upon their death, their interest automatically passes to the other joint tenants. If you hold your interest in the land is as a joint tenant, you may not be able to bequeath your share to someone else (such as your children). The situation is different for tenants in common: if you hold your share as a tenant in common, you can bequeath this interest to another person by specifying this in your will.

You also asked about alternatives to paying out departing partners. You could negotiate a different exit clause with the other partners and amend the partnership agreement to reflect this new arrangement. The method for amending the original partnership agreement will depend on the terms of that document (i.e. the partnership agreement should specify how the document can be amended). It is likely that all remaining partners will need to consent to any amendment to the partnership agreement.

Suggested way forward

Your situation raises several important legal issues. You would benefit from having a lawyer review the partnership agreement, trust deed and certificate of title to properly assess your legal rights and options. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.