Partitions involving Trusts, Corporations, and Partnerships

The overwhelming percentage of real estate partition actions occur between natural people who jointly own property, but partitions are not limited to solely this class of people.  Florida law allows partition actions in a variety of circumstances, including between trustees and beneficiaries, partnerships and corporations.

Partition Actions Involving Trustees and Beneficiaries

Unless otherwise provided in the statutes pertaining to partition, a trustee has the power to exchange, partition, or otherwise change the character of trust property pursuant to 736.0816(4), Fla. Stat.

For instance, when a naked or dry trust is created, vesting the legal title to the trust property in the grantee for their sole use by the beneficiaries, the beneficiaries may obtain a partition of the property under the rule that an individual with the equitable title and a present right of possession to the property also has the right to secure its partition. Conversely, generally, when property is placed in trust through a testamentary direction or a deed of trust, specifying how the trust corpus is to be held, managed, and disposed of, as directed by the trustor, beneficiary, or someone claiming on their behalf, the beneficiary cannot initiate a suit for partition of the property during the trust’s active existence. Permitting partition in such cases would undermine the trust’s objectives and effectively constitute a court-ordered usurpation of the trustee’s powers. Elvins v. Seestedt, 141 Fla. 266, 193 So. 54, 126 A.L.R. 1001 (1940).

Partition Actions Involving Partnerships

If a partnership is terminated and the partners remain as mere tenants in common of the partnership lands, any one of the parties can initiate proceedings to secure the partition of those lands, provided that the property is not obligated to pay the partnership’s liabilities.

Partition Actions Involving Corporations

Partition can be obtained by both natural and corporate entities. For example, a foreign corporation can initiate a lawsuit in the circuit court against a natural person to partition specific property in Florida. Similarly, as with natural persons, the corporate plaintiff in such a lawsuit can also seek general relief, including the declaration of a trust in part of the land involved in the suit and an accounting for the proceeds from the sale of timber extracted from the land by the defendant. This case is cited as Farrell v. Forest Inv. Co., 73 Fla. 191, 74 So. 216, 1 A.L.R. 25 (1917).

Broward Partition Lawyer

Whether you’re thinking about filing for partition or have been served with a Complaint, it’s a wise to speak with a lawyer who can help educate you. You can call Broward partition lawyer Andrew J. Pascale at 877-667-1211 to talk about your options in confidence. The firm serves Broward, Miami-Dade, and Palm Beach Counties. This blog isn’t a substitute for legal advice.