The Situation: The Trust owns 50% of the property. Your brother Roger Jr. owns 50%.
UPDATE: NEW TRUST ALERT (Oct 9, 2025)
Roger Jr. transferred his 50% ownership to the "Roger Pratt II Revocable Living Trust".
Deed Upon Death: Likely revoked. The property now follows his Trust's rules (likely still to Roger III).
Asset Protection: A Revocable Trust provides ZERO protection from creditors. The back rent debt follows him into the Trust.
The Strategy: It is now "Greenery Trust vs. Roger Pratt II Trust." Because you do not inherit Roger's share, any rent debt we forgive is a direct gift to Roger III. We must aggressively claim the back rent debt from his new Trust.
6. The Financial Reality
The "Bleeding" Asset
Every month Roger stays without paying market rent, the Trust loses value. Based on your inputs:
Fair Market Rent
$2,600 / mo
Trust's Share (50%)
$1,300 / mo
Less: Roger Pays Trust's Mortgage Share
-$400 / mo
NET MONTHLY LOSS to Trust
$900 / mo
Annual Loss
$10,800 / yr
Scenario Analysis: Sale at $550,000
Assuming mortgage payoff of $80,000 and 8% closing costs.
Financial Outcome
If We Do Nothing (Passive)
If We Claim Debt (Aggressive)
Roger's Trust (Roger III) Gets
$213,000
$170,000(-$43k debt)
Greenery Trust Gets
$213,000
$256,000(+$43k debt)
YOUR SHARE (Eric)
$53,250
$64,000+
*Aggressive scenario assumes we successfully collect 4 years of back rent (approx $43,200). Even if we settle for less, the threat creates leverage.
7. The Legal Leverage (Comprehensive)
This section outlines every legal concept applicable to your case. Use these terms when speaking with Greg to demonstrate you understand the law.
1. The Rent Claim: "Ouster" & Unjust Enrichment
The Hurdle: Under Nevada common law, a co-owner (Roger) has a right to occupy the property rent-free unless he has "Ousted" the other owners (prevented them from entering).
Our Argument: We argue "Constructive Ouster." By occupying the home exclusively for 9 years and refusing to sell or pay the Trust its share, Roger has effectively excluded the Trust.
Secondary Claim: We also claim "Unjust Enrichment." Roger received a measurable benefit ($100k+ in free rent) at the expense of the Trust. Fairness dictates he must pay it back.
2. The Time Limit: Statute of Limitations (NRS 11.190)
The 4-Year Rule: Nevada law limits debt collection for obligations not in writing (like this oral arrangement) to 4 years. This is why we calculate the debt at ~$43,000 (48 months) rather than the full 9 years. Debt from 2016-2021 is likely legally "stale."
Laches Defense: Roger can argue "Laches"—that you waited too long to complain, implying consent. Action: Sending a demand letter today stops this clock and counters the Laches defense.
The "Silver Bullet": Even though the house transfers to Roger III automatically upon death (via Deed Upon Death or Trust), it is strictly liable for Roger Jr.'s debts for 18 months if his estate has no other cash.
If Roger Jr. dies owing the Trust $43,000, we can force the sale of the house to pay that debt before Roger III gets clear title.
Duty to Make Property Productive: Greg has a legal obligation to ensure Trust assets generate income. A $0 return on a $275k asset is a breach of duty.
Duty of Impartiality: Greg cannot favor one beneficiary (Roger) at the expense of others (Eric/Eddie). Allowing free rent violates this.
Consequence: If Greg fails to act, you can sue for "Surcharge"—forcing Greg to pay the lost rent out of his own pocket.
This is the "Nuclear Option." If co-owners cannot agree, the Court will order the property sold. There is no defense against this.
Common Benefit Rule (NRS 39.480): Legal fees for the partition are paid from the sale proceeds before distribution. This means Roger effectively pays half your legal fees to sue him.
6. Mortgage Safety (Garn-St. Germain Act)
Fear: "If Roger dies, the bank will foreclose immediately."
Reality: The Garn-St. Germain Depository Institutions Act of 1982 is a federal law that prohibits lenders from enforcing the "Due on Sale" clause when a property transfers to a relative upon death. As long as payments are made, the loan stays.
8. Action Plan: How to Talk to Greg
Your Goal: Use this presentation mode to show Greg that you are not attacking him, you are trying to save him from liability. He is currently exposed to being sued by other beneficiaries.
(This hides your strategy notes and shows only what Greg needs to see)
Phase 1: Immediate Pressure
1
Send This Email to Greg (Updated for New Trust)
Subject: Urgent: Accounting of Trust Assets / Greenery Ct Property
Greg,
As a beneficiary, I am requesting an accounting of the Trust's assets pursuant to NRS 165.141.
The Trust is losing roughly $900/month by failing to collect fair market rent for its 50% share. Over the last 4 years, this represents a loss of over $43,000.
I noticed Roger Jr. transferred his interest to the "Roger Pratt II Trust" on Oct 9, 2025. Please confirm in writing within 10 days what steps you are taking to:
1. Demand back rent from the "Roger Pratt II Trust"; or
2. List the property for sale immediately.
3. Or, negotiate a "Pay at Close" settlement where Roger's Trust agrees to have the $43,000 back rent deducted from his share of the sale proceeds at escrow.
We are willing to handle this as a simple deduction from his share of the sale proceeds at escrow, avoiding all litigation costs.
Sincerely,
Eric Pratt
Phase 2: If Roger Jr. Dies
WARNING: You have a strict time limit (usually 90 days) to file claims.
!
Notify Greg: "Greg, you must file a Creditor's Claim against Roger's Trust Estate immediately. If we miss the deadline (NRS 164.025), you may be personally liable."
9. Legal Strategy & Demand Letters
Status Update: Eric has spoken with Greg. Greg has committed to calling Roger Jr. to verify his status (alive/deceased).
Part 1: Do I Need an Attorney?
Use this checklist to decide if you need to hire counsel right now:
✅ DIY (Greg as Trustee)
Sending initial demand letters.
Negotiating the "Clean Break" sale.
Listing the property if Roger agrees.
❌ Attorney Required
Filing a "Partition Action" lawsuit.
Filing a "Creditor's Claim" in probate.
If Roger Jr. refuses to communicate or hires his own lawyer.
Part 2: Draft Letters for Greg to Send
Draft A: The "Soft" Demand (If Roger is Alive & Cooperative)
Use this if Greg's phone call goes well. It frames the issue as "compliance" rather than a fight.
Date: [Today's Date]
To: Roger Pratt Jr., Trustee of the Roger Pratt II Revocable Living Trust
Re: 6920 Greenery Ct - Co-Ownership Status
Dear Roger,
It was good speaking with you. As Trustee of the Greenery Trust, I have a fiduciary duty to ensure all Trust assets are productive and compliant with Nevada law.
Since the property is currently occupied solely by you (and/or your guests) without a lease, the Trust is accruing a significant loss in fair market rental income. We need to formalize this arrangement immediately to avoid legal complications for both of us.
We have two options to resolve this amicably:
1. **Sale:** We list the property for sale this month. You receive your 50% share of the proceeds, and we can discuss waiving the back rent.
2. **Rent:** You sign a lease for the Trust's 50% interest at fair market value ($1,300/mo) and begin payments immediately.
Please let me know by [Date + 7 days] which path you prefer so we can prepare the paperwork.
Sincerely,
Greg Pratt, Trustee
Draft B: The "Hard" Demand (If Roger is Hostile/Silent)
Use this if Roger ignores the call or refuses to cooperate. It creates the legal paper trail for "Ouster."
Date: [Today's Date]
To: Roger Pratt Jr., Trustee of the Roger Pratt II Revocable Living Trust
Re: FORMAL DEMAND FOR RENT / NOTICE OF OUSTER
Roger,
As Trustee of the Greenery Trust (50% Owner), I am writing to formally demand that the Trust be compensated for its share of the property at 6920 Greenery Ct.
You have enjoyed exclusive possession of the property since 2016 without paying rent to the co-owner. This constitutes "Unjust Enrichment" under Nevada law. The estimated back rent owed to the Trust for the last 4 years alone exceeds $43,000.
**Demand:**
We demand that you either (A) Agree to sell the property immediately, or (B) Begin paying $1,300/month in rent to the Trust starting [Next Month 1st].
If we do not receive a written response by [Date + 14 days], the Trust will be forced to file a Partition Action under NRS Chapter 39 to compel the sale of the home and recover the back rent debt from your share of the proceeds.
Sincerely,
Greg Pratt, Trustee
10. Trustee Succession: Eric Taking Charge
New Development: Greg is not doing well. Eric may need to step in as Trustee to protect the asset.
How Eric Becomes Trustee
Resignation (Easiest): Greg signs a formal "Resignation of Trustee" document. If the Trust names Eric as the successor, he signs an "Acceptance of Trustee." No court required.
Incapacity: If Greg cannot sign, you typically need 1-2 doctor's notes stating he is unable to manage financial affairs to trigger the succession clause.
Can Roger Jr. Block Eric?
Generally, No. The Trust document dictates succession. If it names Eric as the Successor, Roger's objection is irrelevant unless he can prove in court that Eric is "unfit" (e.g., fraud/crime). If the Trust allows Greg to appoint a successor, Greg's choice stands. Roger would have to sue to stop it, which is expensive and difficult.
11. The "Landlord" Strategy (Eric's Preference)
Eric is okay with Roger Jr. living in the property, provided the financial bleeding stops. This is the "Stay & Pay" strategy.
The Goal: Convert "Dead Equity" into "Monthly Income" + "Secured Debt."
Strategy A: If Roger Can Pay Monthly
Roger signs a standard residential lease for the Trust's 50% interest.
Rent: $1,300/month (50% of market value).
Benefit: The Trust finally gets cash flow.
Strategy B: If Roger is "House Rich, Cash Poor" (Cannot Pay)
Option 1: The "Grand Bargain" Promissory Note
Roger signs a Promissory Note secured by a Deed of Trust against his 50% share of the house.
Amount: Can cover the full 9 years (~$100k) if he agrees. This note becomes a new contract, bypassing the 4-year Statute of Limitations.
Terms: No monthly payments required. Interest accrues. Full amount due upon sale or death.
Result: He stays for free now, but the Trust gets paid later from his equity.
Option 2: Equity Drawdown (Monthly Deduction)
If he refuses the big note, we deduct $1,300/mo from his future inheritance share every month he stays. This is risky if he lives too long and eats up all his equity.
Template: Stay & Pay Offer
Dear Roger,
I am taking over management of the Greenery Trust affairs. We want you to be able to stay in the home, but we must stop the financial loss to the other beneficiaries.
We propose a simple solution that allows you to stay:
1. **Lease:** We sign a standard lease where you pay $1,300/mo to the Trust starting next month.
2. **Back Rent:** We acknowledge the past due amount (~$43k) but will not require immediate payment. Instead, we will secure this amount against your share of the property via a Promissory Note, to be paid only when the house is eventually sold or transferred.
*If you cannot afford the monthly rent, we can discuss adding that to the Promissory Note as well, deducting it from your final share of the house.*
This allows you to remain in the home indefinitely while ensuring fairness to the other brothers.
Sincerely,
Eric Pratt
12. The Possession Strategy (Moving In)
Can Eric Move In?
YES. As a beneficiary (with Trustee permission) or as Trustee himself, Eric represents the Trust's 50% ownership. Since ownership is "undivided," he has the right to access the whole house.
The "Key Test" Tactic: Eric can demand a key to the property. If Roger refuses, he has committed "Ouster" (illegal exclusion). This immediately entitles the Trust to 50% of the fair market rent legally.
Can Eric Rent Rooms to Others?
NO (Practically). Because Roger also owns 50% of those specific rooms, he can legally block tenants or make their lives miserable. It is too messy for a third party.
13. Master FAQ
What if Greg refuses to act?
Trustee Negligence
He breaches his fiduciary duty. You can petition to remove him under NRS 163.115. Furthermore, under NRS 163.160, a Trustee can be held personally liable ("surcharged") if their negligence causes the Trust to lose money. Telling Greg, "I will hold you personally liable for the $43,000 lost rent," is often enough to wake him up.
How can I demand an accounting?
Beneficiary Rights
Under NRS 165.141, a beneficiary can formally demand an account. If the trustee fails to provide it within 60 days, the beneficiary can petition the court for review under NRS 165.143.
What is a Partition Sale & what does it cost?
Forced Sale
If Roger refuses to sell, the Trust can file a "Partition Action" lawsuit under NRS Chapter 39. The court will order the property sold.
The Cost: Legal fees for partition actions are typically considered a "common benefit" under NRS 39.480, meaning they are paid from the sale proceeds *before* distribution. While this costs everyone money (est. $30,000), it is the only way to break a deadlock.
Why can we only collect 4 years of rent?
Statute of Limitations
Under NRS 11.190, the Statute of Limitations for an "unwritten contract" or "unjust enrichment" is 4 years. Any rent owed from 2016-2021 is likely considered "stale" and uncollectible by the courts.
Additionally, Roger can argue the defense of Laches, which means "you waited too long to complain, so you consented to it." This is why we focus only on the last 4 years to be safe.
Did the new Trust start the 90-day clock?
Estate Claims
No. The 90-day creditor window only opens when Roger Jr. dies AND notice is published. The transfer to his Living Trust does not trigger this. However, the 4-year Statute of Limitations on back rent is running *right now*. Waiting is still dangerous.
Can Roger's new Trust hide the asset from debt?
Trust Law
No. A revocable living trust provides zero asset protection against creditors during the grantor's life. If Roger owes the debt personally, his Revocable Trust owes it too. We can sue "Roger Pratt II, Trustee" directly. Even after death, trust assets are liable for the settlor's debts if the probate estate is insufficient.
Can Roger kick me off the property?
Co-Tenant Rights
Technically, no single owner has exclusive rights unless agreed upon. As a beneficiary, you don't hold the deed (the Trust does), but the Trustee (Greg) has an equal legal right to possession as Roger Jr. If Roger locks the Trust out without paying rent, he may be committing "Ouster," which strengthens your legal claim for back rent.
Will the bank foreclose if Roger dies?
Mortgage Protection
No. The Garn-St. Germain Depository Institutions Act of 1982 prevents lenders from enforcing the "Due on Sale" clause when a property transfers to a relative upon death. As long as the monthly payments are made, the loan stays.
What about Layleen?
Occupancy
Layleen is not on the Deed. If she is living there, she is a guest or unauthorized tenant. This actually helps your legal case for "Unjust Enrichment" because the Trust is subsidizing a non-owner. Important: Any eviction notice must say "And All Occupants" to legally include her.
Will I have to pay taxes on the back rent?
Taxes
Yes. Money received as "Rent" (or a settlement for lost rent) is taxable income to the Trust, which flows through to you via a K-1 tax form. Money received as "Inheritance" (the sale of the house itself) is usually tax-free capital gains (due to the step-up in basis). However, paying tax on $43,000 recovered is better than receiving $0 because Roger III kept it all.
CONFIDENTIAL: TRUSTEE FIDUCIARY ALERT
Subject: Fiduciary Risk Assessment for 6920 Greenery Ct
ATTENTION: GREG PRATT, TRUSTEE
⚠️ Fiduciary Health Dashboard
Asset Productivity
CRITICAL FAILURE (0% Yield)
Beneficiary Impartiality
BREACHED (Favoring 1 over 3)
Current Monthly Loss
$0
Current Annual Loss
$0
⚖️ Trustee Personal Liability Risk
The Law: Under NRS 163.160, a Trustee is personally liable ("Surcharge") for losses caused by failing to make trust property productive.
Estimated Surcharge Risk: $0
(If beneficiaries sue, the court can order the Trustee to pay this amount out of pocket.)
🛑 The New "Trust vs. Trust" Conflict
Roger Jr. moved his share to the "Roger Pratt II Revocable Trust."
This confirms his 50% share goes to his heirs (Roger III), NOT the Greenery Trust.
The Breach: By failing to collect rent from Roger's Trust, the Greenery Trust is actively subsidizing Roger III and Layleen at the expense of the actual beneficiaries (Greg, Eddie, Eric).
✅ Safe Harbor Path (Immediate Action Required)
To eliminate Trustee liability, we must offer Roger Jr. three choices:
Option A: The Clean Break (Recommended)
Sell the house immediately. Roger's Trust walks away with its full cash share (~$266k). The Greenery Trust waives the back rent debt. (This stops the bleeding immediately.)
Option B: The Escrow Settlement
We sell the house, but we instruct Escrow to deduct the $43,000 back rent from Roger's share at closing and pay it to the Trust. This avoids lawsuits but still recovers the money.
Option C: The Creditor Claim
If he refuses A or B, the Trust must file a lawsuit against the "Roger Pratt II Trust" for "Unjust Enrichment" and "Partition."
🚪 If You Are Unwilling to Act
If the conflict of interest with your brother prevents you from enforcing the Trust's rights, you must protect yourself by choosing one of these paths immediately:
1. Resign as Trustee: Step down and appoint a Successor Trustee (or professional fiduciary) who can be impartial. This stops your liability clock.
2. Delegate to a Professional: Hire a real estate attorney or property manager to handle the eviction/sale. The Trust pays their fees, and you avoid the direct confrontation.
3. Petition for Instructions: File a petition with the Probate Court asking the Judge to order the sale. This shifts the decision-making burden from you to the Court.