Who Owns the Building? Understanding the Trust Clause

12.17.14 | Administration & Operations | by Melissa Lauber

    Legally, congregations hold the title of a local church, but they hold it “in trust” for the entire United Methodist Church. This point of church law, the trust clause, is spelled out in in the Book of Discipline.

    The trust clause dates back to the beginnings of Methodism, and is one of the essential foundations of the Methodist connectional system. Under church law, all church property is held in trust for the denomination, which means that, legally, the denomination has the right to succeed to the title of a local church property. But spiritually, United Methodists also recognize that there is a sacred trust between today’s church members and future generations of United Methodists. The trust clause preserves the doctrine and identity of United Methodism.

    Some Christians who are more familiar with congregationalist churches have difficulty understanding the trust clause or see it as some kind of obstacle. In the congregationalist system of church governance, every local church is independent and autonomous. However, United Methodists have a different form of church governance, based on leadership provided by bishops and members elected to a General Conference. This connectional system, based on the story of the early church as told in Acts 2, connects churches together under a shared polity and understanding of Scripture.

    The advent of the trust clause in Methodism can be traced to its founder John Wesley, who viewed the “connection” as a crucial concept of Methodist doctrine and polity. Its importance was reaffirmed at the Christmas Conference in 1784, which established Methodism in America, at the constitutional conference in 1808 and at the uniting conference in 1968, which created the current United Methodist Church.

    The trust clause has been upheld in civil courts for more than 200 years, which recognize the church’s religious rights. Because some congregations want to leave the denomination and take their property with them, the trust clause exists to ensure that United Methodist principles, especially those of grace social justice and unity amid diversity, are preserved and that forgiveness and reconciliation are practiced in the midst of conflict.

    Specifically, ¶2503 in the Book of Discipline requires that all written instruments conveying property held or hereafter acquired for use as a place of worship or other church activities, except in conveyances that require property ownership to revert to the grantor if and when it is used as a place of worship terminates, shall contain the following trust clause:

    In trust, that said premises shall be used, kept, and maintained as a place of divine worship of the United Methodist ministry and members of The United Methodist Church; subject to theDiscipline, usage, and ministerial appointments of said Church as from time to time authorized and declared by the General Conference and by the annual conference within whose bounds the said premises are situated. This provision is solely for the benefit of the grantee, and the grantor reserves no right or interest in said premises.

    Occasionally, there might not be a trust clause in the written instrument of conveyance. But civil and church law have both concluded that the absence of the trust clause does not change the right or interest of the denomination in succeeding to the title of local church property or the obligation of the local church to hold the property in trust for the denomination. When the required trust clause is not included in the instrument of conveyance, there is an implied trust clause imposed by ¶2503.6 in the Book of Discipline.

    As people of faith work in mission and ministry, conflict can arise. Historically, churches have wanted to separate from the denomination over issues of pastoral compensation, squabbles over worship styles, and not wanting to accept pastors of different races or clergywomen in their pulpits. The reasons are varied. But the trust clause ensures churches will be used solely for purposes consonant with the mission of the entire denomination and that today’s churches will be kept in trust for each of us and for the future generation of United Methodists.

    What the Discipline Says About the Trust Clause

    CHURCH PROPERTY
    Section I. All Titles—In Trust

    2501. Requirement of the Trust Clause for All Property

    1. All properties of United Methodist local churches and other United Methodist agencies and institutions are held, in trust, for the benefit of the entire denomination, and ownership and usage of church property is subject to the Discipline. This trust requirement is an essential element of the historic polity of The United Methodist Church or its predecessor denominations or communions and has been a part of the Discipline since 1797. It reflects the connectional structure of the Church by ensuring that the property will be used solely for purposes consonant with the mission of the entire denomination as set forth in the Discipline. The trust requirement is thus a fundamental expression of United Methodism whereby local churches and other agencies and institutions within the denomination are both held accountable to and benefit from their connection with the entire worldwide Church. In consonance with the legal definition and self-understanding of The United Methodist Church (see ¶ 140), and with particular reference to its lack of capacity to hold title to property, The United Methodist Church is organized as a connectional structure, and titles to all real and personal, tangible and intangible property held at jurisdictional, annual, or district conference levels, or by a local church or charge, or by an agency or institution of the Church, shall be held in trust for The United Methodist Church and subject to the provisions of its Discipline. Titles are not held by The United Methodist Church (see 807.1) or by the General Conference of The United Methodist Church, but instead by the incorporated conferences, agencies, or organizations of the denomination, or in the case of unincorporated bodies of the denomination, by boards of trustees established for the purpose of holding and administering real and personal, tangible and intangible property.

    2. The trust is and always has been irrevocable, except as provided in the Discipline. Property can be released from the trust, transferred free of trust or subordinated to the interests of creditors and other third parties only to the extent authority is given by the Discipline.

    3. Local churches and other United Methodist agencies and institutions may acquire, hold, maintain, improve, and sell property for purposes consistent with the mission of the Church, unless restricted or prevented by the Discipline.

    ¶2503 Trust Clauses in Deeds

    1. Except in conveyances that require that the real property so conveyed shall revert to the grantor if and when its use as a place of divine worship has been terminated, all written instruments of conveyance by which premises are held or hereafter acquired for use as a place of divine worship or other activities for members of The United Methodist Church shall contain the following trust clause: (See Judicial Council Decision 688.)

    In trust, that said premises shall be used, kept, and maintained as a place of divine worship of the United Methodist ministry and members of The United Methodist Church; subject to the Discipline, usage, and ministerial appointments of said Church as from time to time authorized and declared by the General Conference and by the annual conference within whose bounds the said premises are situated. This provision is solely for the benefit of the grantee, and the grantor reserves no right or interest in said premises.

    2. All written instruments by which premises are held or hereafter acquired as a parsonage for the use and occupancy of the ministers of The United Methodist Church shall contain the following trust clause:

    In trust, that such premises shall be held, kept, and maintained as a place of residence for the use and occupancy of the ordained ministers of The United Methodist Church who may from time to time be entitled to occupy the same by appointment; subject to the Discipline and usage of said Church as from time to time authorized and declared by the General Conference and by the annual conference within whose bounds the said premises are situated. This provision is solely for the benefit of the grantee, and the grantor reserves no right or interest in said premises.

    3. In case the property so acquired is to be used for both a house of worship and a parsonage, the provisions of both trust clauses specified in §§ 1 and 2 above shall be inserted in the conveyance. 4. In case the property so acquired is not to be used exclusively for a place of worship, or a parsonage, or both, all written instruments by which such premises are held or hereafter acquired shall contain the following trust clause:

    In trust, that said premises shall be kept, maintained, and disposed of for the benefit of The United Methodist Church and subject to the usages and the Discipline of The United Methodist Church. This provision is solely for the benefit of the grantee, and the grantor reserves no right or interest in said premises.

    5. When property is acquired from another United Methodist entity or organization, whether it is to be used as a place of divine worship, parsonage, or other use, all written instruments by which such premises are held or hereafter acquired shall contain the following trust clause:

    In trust, that said premises shall be held, kept, maintained, and disposed of for the benefit of The United Methodist Church and subject to the usages and the Discipline of The United Methodist Church.

    6. However, the absence of a trust clause stipulated in §§ 1, 2, 3, 4, or 5 above in deeds and conveyances executed previously or in the future shall in no way exclude a local church or church agency, or the board of trustees of either, from or relieve it of its connectional responsibilities to The United Methodist Church. Nor shall it absolve a local church or church agency or the board of trustees of either, of its responsibility and accountability to The United Methodist Church, including the responsibility to hold all of its property in trust for The United Methodist Church; provided that the intent of the founders and/or a later local church or church agency, or the board of trustees of either, is shown by any or all of the following:

    1. the conveyance of the property to a local church or church agency (or the board of trustees of either) of The United Methodist Church or any predecessor to The United Methodist Church;
    2. the use of the name, customs, and polity of The United Methodist Church or any predecessor to The United Church in such a way as to be thus known to the community as a part of such denomination; or
    3. the acceptance of the pastorate of ordained ministers appointed by a bishop or employed by the superintendent of the district or annual conference of The United Methodist Church or any predecessor to The United Methodist Church.