I still don't understand how it would be possible for a trust, which isn't a natural person, to own a right to a life estate.  I know that Alan has the right to use, occupy, etc - that's pretty standard across the board - but that's what it is - a right to use, occupy, etc.  How could a trust do that; unless, possibly Alan is the beneficiary of the trust.  If Betty & Carla want to transfer their interest, or mortgage their interest, Alan has to join in on all docs, which is also standard - but I am puzzled about the trust thing. 

I'm also puzzled by the beneficiary aspect of the Trust.  If Alan is the sole beneficiary of the trust then I'd say ok - but why bother - but if he isn't & there are other beneficiaries then possibly there's a problem.  I don't believe a life estate interest can be transferred & I get it that the trustees are the holders, not the beneficiaries; but still the scenario doesn't seem possible to me.