A good but disturbing article
http://www.worldmag.com/articles/12533Who owns the steeple?
Religion: Litigation looms over church property as conservative congregations and dioceses consider leaving mainline denominations | Edward E. Plowman
As The Episcopal Church (TEC) finds itself cracking apart, the question on everybody's mind is: "Can departing churches keep their property?"
The answer: It depends. Courts differ in how they handle church property disputes. State corporate laws governing property ownership, deeds, and trusts are far from uniform and may be subject to conflicting interpretations. So, as litigation looms, attorneys on all sides are busy researching case law and assembling briefs.
Many denominations have clauses declaring that property owned by congregations is held in trust for the denomination: A church is free to leave, but not with its property. For many years, most courts routinely deferred to denominational law in property disputes—especially in cases involving "hierarchical" denominations with structured top-down government, including TEC, the Presbyterian Church (U.S.A.) (PCUSA), and the United Methodist Church (UMC). All three are strife riven over doctrine and discipline—and ownership of church property.
But times—and the courts—are changing. Because property ownership is in the realm of state corporate law, a few courts years ago began deciding church property disputes according to "neutral principles" while steering clear of doctrinal squabbles. The U.S. Supreme Court in 1979 (Jones v. Wolf) not only approved but also encouraged this approach. TEC hurried to add the Dennis Canon to its constitution, clearly claiming that property owned by churches is held in trust for TEC.
However, a California appeals court in 1981 spelled out a series of neutral principles in deciding The Protestant Episcopal Church v. Barker. It in effect ignored the Dennis law and allowed three departing Episcopal congregations to keep their property while denying another.
Fast forward to 2004: A California appeals court allowed St. Luke's United Methodist Church in Fresno, which had left the UMC, to keep its property. St. Luke's had changed its articles of incorporation, clearly deeding all its property to itself with no mention of a trust. That act, the court ruled unanimously, revoked the UMC trust. In short, trusts are not a dead-end; the party that created a trust can revoke it. The California Supreme Court upheld the decision that same year.
(much more in the article)