It has been suggested by an employee of the United Methodist Church denomination, who is not an attorney, that the Methodist Trust Clause within the Book of Discipline is universally enforceable and that local churches should not even think about challenging it when considering whether it should leave the denomination and leave its property. The WCA would be prepared to launch a new Methodist expression should the conference adopt plans for separation. This means that there is a wider question over who really owns a church building. Powered by, collectively had $621 million in net assets in 2018, ecumenical and inter-religious relationships. There is a big issue when it comes to determining the ownership of church property in the US is how to apply the first amendment and the legal doctrine of neutral principles. endobj (This is not required, and it could work against a congregation seeking to leave the UM Church.). /ModDate (D:20131017152019-04'00') The materials on this website have been prepared by Reynolds Law Groupfor informational purposes only and are not legal advice. The United Methodist Church, the Presbyterian Church (USA), and The Episcopal Church all have language in their constitution and church law that states that the local congregation holds its property "in trust" for the denomination. Internet subscribers and online readers should not act upon this information without retaining professional counsel. The settlor transfers property to a trustee under certain agreed conditions, creating a fiduciary duty for the trustee. Book of Discipline 2501. Thus, the Trust Clause was never intended to apply to local churches or to be used as a yoke to keep the local church in the denomination. >> xX]o})HtE"uVJdBq]},I-Zpsfsx^SHO_/]\^/L}JowO4M[)= Uy|wu!P.[,nX+o] _u]RzM_si=Kd8{5yUU#\h . What is the Church's position on homosexuality? Despite the many reservations that you may have about leaving the UM Church, you should know that church property disputes are not something new. Do you have the Trust Clause in your churchs deed? Methodist Church. Just last week, the Texas Supreme Court decided two cases regarding The Episcopal Church in favor of the neutral principles approach. Ask The UMC: Valuing Life; Christian Year. Link to webpage. /F1 9 0 R The 2016 issue of the Book of Discipline also provides that if the provisions of the Book of Discipline that concern real property conflicts with state law, the state law prevails over the directives of the Discipline. This circumspection grants churches a degree of autonomy to govern themselves by religious terms. The question in all of the cases will be whether there is valid express or implied trust under the state Trust Code. The most recent United Methodist Book of Discipline includes the following with respect to trust clauses, concerning the real and personal property of the local Church. The land is worth $58,851. 7 0 obj /Font << According to The United Methodist Churchs Book of Discipline, all local United Methodist churches hold their properties, real and personal, tangible and intangible, in trust for the benefit of the general church. However, most of the time, the legal battles that we see in the news are the result of the wider denominations claiming a right to determine the occupancy of the property, sometimes as a result of the existence of a trust clause in the denominations constitution. That would be trespassing. Given the pressing issue of finding a place for Methodist to learn without the fear of imprisonment for violating the Conventicle Act of Charles the Second (1664), Wesley created the Model Deed, now commonly known as the Trust Clause, so that the local meeting houses would follow the law of England. Access Audits and Statements. In others, they may not be. As an example, were going to look at two similar churches, that have totally different ways of establishing ownership of church property. The head of the church is usually responsible for making all decisions related to the church property and its use. Title to local church property is not held by the denomination, or the General Conference of The United Methodist Church, but rests with incorporated local churches, or in the case of unincorporated local churches, with boards of trustees established for the purpose of holding and administering local church property. /F2 11 0 R Jones had already given passing endorsement to allowing courts to examine the deed or will of the donor, or other instrument by which the property is held to determine ownership. /I2 17 0 R In some states, trusts are in fact revocable. Once all payments or transfers are accomplished, the annual conference in which the local church is located is required to release any claims it has under the trust clause which means that the local churchs property, real and personal, tangible and intangible, passes free and clear of any trust to the new entity formed by the local church. /Pages 3 0 R 6 0 obj In addition, many denominational bylaws may contain an express trust that states that all property held by local churches are held in trust for the denomination. 1 0 obj The Presbyterian Church of America (abbreviated to PCA), has a legal process by which the title or deed to the real property is held exclusively by the local church or by a church-associated company. The Nicene Creed (AD 381) 2. Balancing the legal need to stay neutral on theology for all religions, separate denominations, or disputing factions of the same church, with the ability to weigh in on issues that affect churches on a more practical level, without having an effect or a preference for theology. The second blog addressed Methodist governance. In this case, the Supreme Court ruled that the Free Methodist Church did not have standing to sue the Episcopal Church for taking control of the property. 2501. Requirement of the Trust Clause for All Property. The United Methodist Trust Clause: Who Owns the Church Property? Many deeds contain clauses that cause the churchs property to become the property of the denomination should the property no longer be used for denominational purposes. From a spiritual perspective, held in trust refers to a sacred trust between todays church members and future generations of The United Methodist Church. /Length 2093 >> Psalms 100:5 (NRSV). In the Supreme Courts 1872 Watson v. Jones decision, the Court adopted an alternative approach called hierarchical deference. This method bound courts to defer to the judgment of the highest ecclesiastical tribunal of the denomination. According to 2501 inThe Book of Discipline of The United Methodist Church, title to all local church property real and personal, tangible and intangible is held in trust for The United Methodist Church and is subject to the provisions of theBook of Discipline. That language is known as the "Trust Clause." (See the Book of Discipline, 2501 and 2503) While many local congregations within the United Methodist Church have reached the decision point that they can no longer be a part of the denomination, the question they are asking is whether they can leave and retain ownership of their real and personal property. In todays culture, legal threats to churches seem to be mounting on every side as many localities seek to restrict access to prime real estate through zoning, opponents of religious liberty attempt to dismantle tax-exempt benefits for churches and clergy, and disputes about church property and other issues increasingly wind up in the courts. The new paragraph added to the Discipline grants local churches the limited right . For the Lord is good; his steadfast love endures forever, and his faithfulness to all generations. Some churches, typically the independent ones that are run by one congregation for themselves, hold title to their real estate, whereas other churches hold their title/property deed in trust (through the means of something like a property holding company) for the churchs exclusive use and benefit. This trust clause means that the denomination may assert a claim to the congregations property in the event of a split in the congregation, disassociation, or dissolution from the wider denomination. What does it mean that the local church owns the property, in trust, for the Often, if a local church has split from the wider denomination, there can be disputes over ownership of the real estate. Key starting points include the states corporation, contract, and trust law, as well as court decisions within the state that interpret those provisions and reveal how courts might respond to claims in a particular church property dispute. In 1947, the Supreme Court again ruled against the Free Methodists, in the case of Watson v. Jones. You can also reach out to one of our trusted professionals to answer any other questions that you might have. 2019 publications by the United Methodist Professo A Primer on UMC Assets: Church-Related Institutions, Recommended Reading: European Bishops on the Protocol, A System for Preserving the UMC Connection in Germany, A Primer on UMC Assets: Trust vs. Because states regulate property, congregants will encounter different rules in every state. This decision was based on the fact that the Church had signed an agreement with the city, giving up any future claims to the property. I am not advocating separation at this point in our United Methodist Church. Our Calling; Structure; Views of the Church; What is distinctive about Methodism? Bayshore Christian School wins its case against the Board of [], Wespath released a report confirming that itspension plan for clergy [], According to the United States Supreme Court, the determination of [], Church Property Disputes/Denominational Splits, Guide to Understanding the United Methodist Church Trust Clause, Understanding the United Methodist Church Trust Clause, Church Property Disputes and Denominational Splits, Jury rules in favor of Bayshore Christian School in its defense of its right to keep its property from the Board of Trustees of the Florida Annual Conference of the United Methodist Church, The Methodist Pension Plan is FULLY FUNDED and why that matters to local Methodist Churches, The Constitutional Parameters of the Methodist Trust Clause. Or, did the church have to obtain permission from the denomination to purchase, encumber, or sell the property? To read any of the previous blogs in this series (1-5), click on the hyperlinks above. State-to-state there are many similarities in trust law, but it is important to remember that states, whether through jurisprudence or statutory instruction, create their own standards for trust law. Episcopal Churches in South Carolina hold property that was titled in the name of the local churches, even though the original deeds did not mention the trust clause. In 1980, the Supreme Court decided the case of Kedroff v. St. Nicholas Cathedral. There are a few documents a pastor needs to be able to readily access, including the churchs articles of incorporation, constitution and bylaws, and, of course, the deeds to the churchs property. However, the First Amendment also says that the freedom of religion is protected. In conclusion, there are a lot of different answers to the question who owns churches depending on a variety of factors. Ownership, Recommended Listening: Missionary Interviews. Can congregations leave their denomination and keep their property? Let the attorneys of Dalton & Tomich, PLC help you lead your congregation to a new beginning. As stated above, a property dispute is the most likely reason a church will find itself in court. Discover, Develop and Deploy Spiritual Leaders to Make Disciples of Jesus Christ for the Transformation of the World. /Outlines 2 0 R This paragraph has been part of the Book of Discipline for many years. /Creator (dompdf) ] However, this is made a lot more complicated by the existence of multi-site churches which are the same institution/establishment or denomination spread out over multiple locations. When it came to judicial decisions concerning the ownership of property, the dominant rule for roughly 150 years was the English rule, which required courts to award property to whichever faction of the church adhered to the true standard of faith, meaning the old established orthodoxy of that particular religious group. Read More. The most recent case, in 2018, was brought by a church that has previously owned its property, subject to a trust clause in the denominational constitution. In many cases applicable rules differ only mildly from jurisdiction to jurisdiction. Such a plan would permit local churches to align with new expressions of Methodism that represent traditionalists, centrists and progressives. This question is frequently asked when church property is acquired or sold, or during the financing and construction of new facilities. 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. References to the United Methodist Church in a congregations articles of incorporation, for instance, can be damaging. Legislation adopted by the 2019 General Conference has now opened a potential pathway for local churches to exit the denomination with their properties. In this way, the annual conference or a district retains a right or interest in the property and does not waive the benefit of the trust clause. Over the past ten years, there have been numerous court cases where denominations have sued local churches and vice versa over who gets to keep the property when a local congregation withdraws. For example, a deed might state that this property is conveyed to First Assembly of God so long at is it used as an Assemblies of God church, but if it ceases to be used as an Assemblies of God church then ownership reverts to the Texas District Council. There are a variety of ways such clauses may be worded in the Deed and it is important for the church to understand such language. Your email address will not be published. In the US, the ownership of churches varies greatly church by church, and is dependent on a number of factors, including elements like the traditions that have been established by the faith or denomination in the past, as well as the ecclesiology, and the more practical factors, such as the kind of real estate that the church is on, how its maintained, and by whom. Required fields are marked *. Manses and Church Buildings. Join and communicate with your church. Do not send us information until you speak with one of our lawyers and get authorization to send that information to us. While many local congregations within the United Methodist Church have reached the decision point that they can no longer be a part of the denomination, the question they are asking is whether they can leave and retain ownership of their real and personal property. 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. To the extent that state bar rules may require designation of a principal office and/or a single lawyer responsible for this website, Reynolds Law Group designates its office in Virginia Beach, VA, USA. And unless the local church trust is specified as irrevocable, the local church can revoke the trust at any time. 19 0 R To learn how Reynolds Law Group, PLLC can become a member of your team and help your protect your church and more, check us out at reynoldslawgroup.com or call 757.219.2500 to set up a free strategy session today. . All congregational, clergy, and lay members of the WCA affirm the following Doctrinal Standards: 1. Ask The UMC has answers to your questions about the rich theological heritage and faith life of The United Methodist Church. It allows them to disaffiliate or exit the denomination provided they comply with the requirements of the newly adopted legislation. The resolution of competing claims to ownership or use of local church property, though largely a matter of state statutory and case law, is guided by decisions of the United States Supreme Court interpreting the religion clauses of the First Amendment to the U.S. Constitution. Reynolds Law Group is not responsible for the content of any such sites, makes no representations regarding any such sites, cannot guarantee their practices regarding data privacy, and does not necessarily endorse or approve of the information, material, products, or services contained on or accessible through any such sites. The Wesleyan Covenant Association is working with such churches to facilitate their connection with each other in this season of transition and uncertainty. United Methodists celebrate the Christmas and Easter seasons and other Christian holidays. How state law directs the incorporated management of property, then, can be of critical importance. Local church property (real or personal, tangible or intangible) is owned by local legal entities and held in trust for the denomination as a whole. This is complicated even more by the fact that a church is allowed to weigh in on matters of the church that do not hinge on matters of wider theological questions. For churches begun in this country, such as Baptist and Pentecostal, local church property usually is owned by the congregation itself. The local church, prior to disaffiliation, is to pay any unpaid apportionments for the 12 months prior to disaffiliation, as well as an additional 12 months of apportionments.