Posted by Philly Dave on October 27, 1998 at 07:15:59:
Once again, Bill is correct. A decedent (i.e., the deceased person) has no power to pass (through a Will) property that he or she did not own at the time of death. In the scenario you describe, the property intended by the terms of the Will to be devised (i.e., passed on) to a beneficiary was owned by the trust, not by the decedent, at the time of death. The practical effect, as far as the Will is concerned, is that the property does not exist and therefore cannot be passed from the Estate to the named beneficiaries.
Any transfer of this property will be done in accordance with the terms of the instrument creating the trust, or, if that document gives the Trustee the power to sell the property, according to terms negotiated by the Trustee. (If there is a close relationship between the Trustee and the purchaser(s), a review of the transaction by a court may be required to ensure its fairness to the Trust beneficiaries.)
Hope this helps. Good luck!