FACT SHEET 12

August 1998

TRUSTS AND ESTATES 

AND THE RRA 

Reclamation Reform Act of 1982 (RRA) 

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This Fact Sheet explains application of the acreage limitation entitlements to trusts and

estates, trust criteria, and the rules for attributing land held (directly or indirectly owned 

or leased) by a trust or estate.

TRUSTS

ACREAGE LIMITATION ENTITLEMENTS FOR ALL TRUSTS

The RRA, as amended, provides that trustees holding land in a fiduciary capacity will not

be subject to the ownership or pricing limitations of Federal reclamation law if the trust meets

the specific criteria provided below. In addition, the RRA includes special criteria applicable 

to REVOCABLE trusts. 

The acreage limitation entitlements associated with trusts are based solely on the combined

applicable entitlements of the individual(s) or entity(ies) to which the land is attributed, be it

the grantor(s), trustee(s), or beneficiary(ies). An individual's or entity's interest in land owned

directly or indirectly by a trust, in combination with any other land owned directly or indirectly,

may not exceed the ownership entitlement applicable to the individual or entity. If land held 

in trust exceeds an individual's or entityís ownership entitlement, the land held in excess will 

be deemed ineligible to receive Bureau of Reclamation (Reclamation) irrigation water until it

is sold to an eligible buyer at an approved price. If eligible land held through a trust, in

combination with any other land owned or leased directly or indirectly, exceeds the 

individual's or entity's nonfull-cost entitlement, the full-cost rate will be applied to any

deliveries of Reclamation irrigation water to eligible lands that exceed the nonfull-cost

entitlement.

TRUST REVIEWS AND TRUST DEFINITIONS

Any trust that holds nonexempt land (irrigation land or irrigable land that is subject to the

acreage limitation provisions) that will receive Reclamation irrigation water must be reviewed

and approved by Reclamation. Reclamation makes a distinction between irrevocable and

revocable trusts when attributing land and uses the following definitions:
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Grantor revocable trust means a trust that holds irrigable or irrigation land that may be

revoked at the discretion of the grantor(s), or terminated by the terms of the trust, AND

revocation or termination results in title to the land held in trust reverting either directly 

or indirectly to the grantor(s).

Irrevocable trust means a trust that holds irrigable or irrigation land and does not allow any

individual, including the grantor or beneficiaries, the discretion to decide when or under what

conditions the trust terminates, AND that upon termination the title to the land held in trust

transfers either directly or indirectly to a person(s) or entity(ies) other than the grantor(s).

Otherwise revocable trust means a trust that holds irrigable or irrigation land and that may

be revoked at the discretion of the grantor(s) or other parties, or terminated by the terms of the

trust, AND revocation or termination results in title to the land held in trust transferring either

directly or indirectly to a person(s) or entity(ies) other than the grantor(s). 

CRITERIA AND ATTRIBUTION RULES FOR ALL TRUSTS

General Criteria

All trust agreements must:

1. Be in writing,

2. Identify the beneficiaries, and

3. Describe the interest of each beneficiary.

Attribution for Irrevocable Trusts

If all of the preceding criteria are met, the land held in trust will be attributed to the

beneficiaries of the trust as identified within the trust document and on the appropriate RRA

forms. If one or more of the criteria are not met, the land will be attributed to the trustee.

ADDITIONAL CRITERIA AND SPECIAL ATTRIBUTION RULES

FOR REVOCABLE TRUSTS

Criteria for Grantor Revocable and Otherwise Revocable Trusts

In addition to meeting the three criteria listed in the preceding section, in order to be eligible

to receive Reclamation irrigation water a revocable trust document must:

1. Identify the grantor(s) of all land held in trust,

2. Identify the conditions under which the trust may be revoked or terminated, and

3. Specify to whom title to the land held in trust will be conveyed upon revocation 

 or termination.
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If one or more of the criteria are not met, land held in a grantor revocable trust will be

ineligible to receive Reclamation irrigation water until the missing information is submitted. 

The only exception to this will be in those instances where the land held in trust has already

been attributed to the grantor on both the trustís and grantorís RRA forms.

If the trust is an otherwise revocable trust and Reclamation cannot determine (1) who will

hold the land in trust upon termination or revocation or (2) the grantor(s) of the land held in

trust, then the land held by the otherwise revocable trust will be ineligible to receive

Reclamation irrigation water until the missing information is submitted.

Attribution for Grantor Revocable Trusts that MEET the Criteria

If the trust can be revoked by the grantor(s) of the land held in trust and, as a result, title to

the land reverts either directly or indirectly back to the grantor(s), the land in trust will be

attributed to the grantor(s). If the trust will be revoked or terminated upon the expiration 

of a specified period of time and, as a result, title to the land reverts either directly or

indirectly back to the grantor(s), the land held in trust will be attributed to the grantor(s). 

If the conditions discussed in the two preceding sentences have not been met, the trust is 

not a grantor revocable trust.

Attribution for Otherwise Revocable Trusts that MEET the Criteria

If the trust meets all of the criteria included on this Fact Sheet, the land will be attributed to

the beneficiaries of the trust in proportion to their beneficial interests in the trust. If the trust

satisfies the additional criteria for revocable trusts, but fails to meet any of the general criteria,

the land will be attributed to the trustee.

CLASS OF BENEFICIARIES

For purposes of identifying beneficiaries, a class of beneficiaries specified within the trust

document is acceptable, provided the trust document is specific as to the beneficial interest 

to which each member of the class will be entitled and the members of the class are

identifiable. If the trust criteria are met, the trust is not a grantor revocable trust, and a class

of beneficiaries is specified in the trust document, attribution during any given water year will

be made only to such beneficiaries that are natural persons and established legal entities. 

Attribution to unborn or deceased persons, or entities not yet established, will not be allowed

under any circumstances. 

An example of an acceptable class of beneficiaries would be all of the grantorís grandchildren

once they reach the age of 18. However, land held in the trust could not be attributed to a

grandchild for acreage limitation purposes until that person turned 18 years old. If no
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grandchild has reached the age of 18, then the trust must identify where the assets held 

in trust will be attributed in the interim, or the class of beneficiaries will not be acceptable. 

In order for all criteria to be met, the trust would have to identify the level of interest each

grandchild will have once he or she turns 18 years old; for example, ìan equal share.î Once

the person in question meets the two criteria (is a grandchild of the grantor and is at least 

18 years old), they are vested and cannot be removed as a beneficiary by the grantor or

trustee. If the requirement was a grandchild who was ìmature,î instead of reaching 18 years

old, the trust would not meet the criteria because ìmatureî is a subjective provision and allows

each grandchild to be added or removed as a beneficiary at any time by the trustee.

For more information concerning acceptable classes of beneficiaries, contact your local

Reclamation office.

ESTATES

The RRA entitlements associated with estates are based solely on the combined applicable 

entitlements of the individual(s) or entity(ies) to which the land is attributed, be it the

beneficiaries or the executor/administrator of the estate. The estate itself does not have

entitlements under the RRA, and land cannot be attributed to the now deceased landholder. 

If no beneficiaries for the estate have been identified, then the land is attributed to the

executor/administrator. If there is no executor or administrator for an estate, then for

acreage limitation purposes an estate does not exist. Contact your local Reclamation office

for more information as to whom the land in question must be attributed, application of the

acreage limitation entitlements, and how to meet the RRA forms requirements.

DEPENDENTS AND TRUSTS OR ESTATES

Land held in a trust or in an estate for the benefit of a person who is a dependent AND

subject to the discretionary provisions will be attributed to the landholdings of that person's

parent(s) or guardian(s).

WHO MUST FILE RRA FORMS

A Form 7-21TRUST, ìDeclaration of Trustís or Estateís Landholdings,î must be submitted for

the trust or estate itself and appropriate certification or reporting forms must be submitted by

whomever is attributed with the land held in trust or estate. For example, if the land held in

trust is attributed to the grantor, who also happens to be the trustee, a Form 7-21TRUST must

be submitted by the grantor acting as trustee for the trust itself and a separate RRA form must

be submitted by the grantor, if the land held in trust is to be eligible to receive Reclamation

irrigation water.
FACT SHEET 12

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 If a trust includes a class of beneficiaries to which land subject to the acreage limitation

provisions will be attributed, the trustee will be required to submit Form 7-21TRUST

and each of the beneficiaries, whose westwide landholdings exceed the applicable

RRA forms submittal threshold, will be required to submit the appropriate standard

certification or reporting forms annually, even if there is no landholding change after

the initial standard RRA forms are submitted. The submittal of Form 7-21VERIFY 

will not be allowed for such trusts and beneficiaries.

RRA FORMS SUBMITTAL THRESHOLD FOR TRUSTS AND ESTATES

The following table identifies the RRA forms submittal thresholds for land held in a trust or

estate according to the RRA forms submittal category for the district(s) in which the land is

located. The following table is not applicable to whomever the land held in the trust or estate

is attributed, unless such attribution is to another trust.

Acreage Limitation Status of the 

District Where the Land is Located and

Number of Natural Persons to 

Whom the Land is Attributed

District Forms

Submittal

Category 1

District Forms

Submittal

Category 2

Discretionary provisions district

Attributed to 25 or fewer natural persons 240 acres 80 acres

Attributed to more than 25 natural persons 40 acres 40 acres

Prior law district* N/A 40 acres

 * The only exception is if everyone attributed with the land 

held in trust is subject to the discretionary provisions. Then 

the trust will have an 80-acre RRA forms submittal threshold.
FACT SHEET 12

Mission of the Bureau of Reclamation: To manage, develop, and protect water and related resources in an environmentally and economically

sound manner in the interest of the American public.

The Department of the Interior has established a 24-hour toll-free telephone number (1-800-424-5081) for anyone wishing to report suspected

violations of the Reclamation Reform Act of 1982 (RRA). Anyone reporting suspected violations will be protected under Federal privacy laws.

Distributed by the Bureau of Reclamation, United States Department of the Interior.

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NEED MORE INFORMATION?

For questions about: See Fact Sheet:

 A complete list of RRA forms 1

What RRA form(s) should be filed by a:

 Qualified Recipient

 Limited Recipient

 Prior Law Recipient

5

7

9

Signature requirements for RRA forms 10

Forms submittal requirements when a landholder dies 11

For more information on trusts and estates, contact your district or local Reclamation office.