Many California residential property owners hold their properties in a revocable “living trust”. These trusts, used as estate planning tools, allow the trustor to also be the trustee and beneficiary of the trust during the trustor’s lifetime and may be revoked by the trustor at any time before the trustor dies. Questions have arisen as to whether a landlord who places his residential property in a living trust can evict a tenant to move in the trustor’s relatives. Under California landlord-tenant laws and many local landlord-tenant ordinances, eviction of a tenant to move relatives into the unit, or for the landlord to live on the property is a no-fault reason for eviction. Provided the proper notice and compensation are given to the tenant the landlord can then evict the tenant. However, until recently, it was unclear whether a trustor who transferred the property to his living trust was able to then evict to move in or move in relatives since a trust is not a natural person.

In Boshernitsan v. Bach, a case determined in the California First Appellate District Court of Appeals in mid-March of 2021, the Appellate Court determined that the trustees of a revocable living trust qualify as natural persons and as the “landlord” for the purpose of a permissible family move-in eviction.

The tenants in the case refused to leave after being given proper notice that the trustee was moving his relatives into the rental under San Francisco’s rent control ordinance, refused to leave. As a consequence, the landlord filed an eviction action against the tenants. The tenant demurred in that they contended, since the property was in trust the landlord was not a natural person who qualified to evict them to move-in relatives since the trust has no relatives. The San Francisco Superior Court sustained the demurrer without leave to amend and entered judgment against the landlord and for the tenants. Landlord appealed and the Appellate reversed the trial court. The Appellate Court determined,

[a]s a matter of law, only trustees—not trusts—can hold legal title to property. We hold that natural persons who are acting as trustees of a revocable living trust and are also the trust’s settlors and beneficiaries qualify as a “landlord” under the family move-in provision.

Thus, landlords who hold their residential properties in revocable living trusts may evict tenants to move in the trustee’s relatives provided all procedural rules are followed and that is the rub. The procedural rules, especially in the time of COVID-19 are complex. If you are a landlord seeking to take back rented residential property or to move-in relatives, contact qualified legal counsel so you can avoid significant missteps.

The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.