9. If, in five years, she wants to sell a property, can she? Why or why not?
Answer: D
Martha can take a property out of the trust and sell it, because it is a revocable trust.
Since Martha's trust is revocable, she retains the ability to remove properties from the trust at any time, including selling them as she sees fit. This flexibility is a key feature of revocable trusts, allowing the grantor to maintain control over the assets.
A) Martha cannot touch her properties once they are in the trust—they now belong to the trust itself, not to her.
This statement is incorrect because, in a revocable trust, the grantor retains control over the assets and can manage them, including the ability to sell or remove properties from the trust. Therefore, Martha can indeed touch her properties as she maintains ownership rights.
B) The only way Martha can remove her property from a revocable trust is to dissolve the trust, then re-form it with the remaining property.
This option is also incorrect. Martha does not need to dissolve the trust to remove properties; she can directly take a property out of the revocable trust without going through the dissolution process.
C) Martha can sell a property from the trust, if her backup beneficiary and trustee agree to the sale in writing.
While this statement might seem plausible, it is not accurate for a revocable trust where the grantor can make decisions without needing the consent of others. Martha has the authority to sell the property without needing agreement from a backup beneficiary or trustee.
D) Martha can take a property out of the trust and sell it, because it is a revocable trust.
This option is correct as it aligns with the nature of revocable trusts. Martha has the right to manage her assets, including removing properties and selling them, without needing additional approvals.
Conclusion
Martha's ability to sell a property from her revocable trust stems from her retained control over the assets within the trust. Other options incorrectly imply restrictions or processes that do not apply to a revocable trust, confirming that D is the only accurate representation of her rights regarding the property.