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My deceased GRANDFATHER set up a trust that is to to be administered once my GRANDMOTHER passes. Upon my MOTHER's passing, the trust is to terminate and then be divided amongst myself and my cousins. The trust is written in a way that I think will be very difficult to administer while my mother is still living. It says that that the bank, who is the trustee, can basically decide whether or not to pay to any of the living grandchildren, with no duty of equalization, and not taking into consideration, funds available. The bank seems to have sole discretion of whether or not to allow beneficiary distributions.

I would think that the bank, a large corporation, not being obligated to make disbursements and enjoying ongoing management fees, would simply not make any distributions until the trust terminates. This would mean that myself and my cousins would not likely see any of the money until my mother passes. Does this seem correct? Any opinions on what should or could be done?

2007-02-16 15:43:33 · 2 answers · asked by Rob 1 in Business & Finance Personal Finance

2 answers

You said it yourself. WHEN THE TRUST TERMINATES. This is not rocket science and there is probably nothing you can do. Make your own money and stop waiting around morbidly waiting for people to die.

2007-02-16 16:03:33 · answer #1 · answered by justbeingher 7 · 0 0

It appears that the trust was set up to provide for your mother for her lifetime and that the bank/trustee will be paying her regularly once your grandmother is no longer there to do so. Your grandfather made the choice, for whatever reason, not to simply give your mother the money. As it was his money, he had the right to decide what to do with it.

It seems absolutely correct and customary that a trust set up for the support of one person would not ordinarily make payments to anyone else while the person for whom the trust was established is still living. It is actually very easy to administer when you consider what its purpose is - to support your mother.

You and your cousins are beneficiaries of the trust in the sense that once your mother is no longer living, the trust terminates and whatever funds remain are divided among the living grandchildren.

I'd suggest you forget about the money in the trust and concentrate on more immediate issues. Most attempts to fight this kind of thing are expensive and usually lose. Be glad your grandfather had the means and the foresight to ensure that your mother's financial needs are met for her lifetime.

2007-02-17 00:24:38 · answer #2 · answered by roxburger 3 · 0 0

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