Dad died, left me 100k trust... his wife (not my mom) says she can spend it. How do I get it?

Question

My dad died in 2000 and had told my mom about a $100k trust that he set up for me. His wife Betty was to hold the money until "I was ready for it". My mom passed of cancer last year and on her death bed we received a call from Betty in which she said that she had spoken to a lawyer and that she was able to use that money for living expenses since she's retired. She said there would still be some left for me... is this possible? I'm 28 and really need that money and I think she said something about she was going to split what was left up among her other two sons as well. What's the deal?

Answer 1

Locate the trust document or the attorney who drafted it. All I can tell from what you wrote is that you are the beneficiary and Betty may be the trustee. The trustee has a fiduciary duty to manage the trust appropriately which includes providing you with up to the minute reports of its use.

Answer 2

Here is a REAL answer, contact an estate lawyer, you are of age (not a juvenile) if the will doesn't stipulate a set age, then you should be able to access that money. DO NOT take her word on what her lawyer says. There are different laws and different interpretations of them. If the two of you disagree, then she can put a hold on the money (freeze it) until the courts make their decision. you will have to pay a lawyer, but it's better to pay the lawyer than her. Also, call some lawyers, some will give you a free consultation to tell you how they can help you. Also, don't spend it all!! If you get a financial advisor (offered by most banks free) they can help you invest it for the future and for any children you have or may have. GOOD LUCK!

Answer 3

Get a lawyer - Fast. First thing to do is slap an injuction on your Step-mother for touching that trust or any interest accured from the principal, and to stop her or anyone else from removing funds or finacial instruments from that fund until you have been legally recognized by the Courts as the beneficiary of the Trust.

Then get your lawyer to draw up and serve a writ to compel your step-mother to account for the trust principal & all interest accrued, and see how the instrument is drawn and what the terms are, and who if any was signed as administrator of the trust, and who witnessed the trust signing. Also note the date at which the trust is to be turned over to you, rather than a vague statement such as "When you were ready for it". (None should be necessary once you met a majority age of 21, because at that time the trust should have been either turned over to you, or to the bank board of trustees, if your mother stipulated a structured payout schedule). A "verbal" claim by your Step Mother is, (I think), trumped by your blood-line, and acknowledgement of your father's stepwife that she understood that the trust was yours.

Your step-mother's claim that she can just arbitrarily start robbing the trust for living expenses because she is retired is ludicrus, and the claimthat she can divide it between you and her sons is false I think too. HOWEVER, all of this depends on the probate laws of your State. So no matter what seems logical or fair, or just has nothing to do with the law. So go get your own lawyer now - and get the slimest, most venal, unethical, a fire-breathing, baby-stealing, lying, but winning rascal you can find and sick'em on the other side, (better to pay a rat some of the cheese and keep the rest, than to let a pack of rats steal all the cheese.

Good luck to you.

Answer 4

If you are really the remainderman or some type of beneficiary of the trust, you should speak with a lawyer and the trustee (proably the bank who administers the trust). Many trusts are set up to support the life of some beneficiaries (perhaps Betty fit into this category). You need to check to see how the trust was written.

One good thing for you is the trustee is legally responsible to make sure your portion of the trust is not imprudently diminished. Usually what happens is the beneficiary gets a monthly or quartery check - usually just interest - from the trust, and when they die or when you reach a certain, prespecified age, you get the principal. In this case $100,000.

One last thing - I know Betty is not your Mom - but apparently your Dad loved her and did get her involved in his financial matters. Depending on how the trust was set up, she may be telling you the plain and simple truth according to your father's wishes. I know $100,000 is a lot of money - but nothing is worth getting dragged into suspicion and hatred and an extended family squabble. Life is really much to short.

Answer 5

Because it's a trust, I assume you are the trustee and she is the trust holder. Legally, she can if you were under the age limit set or unable to handle money. But it depends on how the will, etc. was stated. However, if you think you are responsible enough (and I would assume so) for the money, and she is being unreasonable, I would contact a lawyer immediately. If she is not the trust holder, then she can't do anything. Do some research and find out. Most trusts have something regarding an age limit in the legalese, but not all.

Answer 6

OK Steve, Where there was a will there was a lawyer. Even if Betty was named arbiter of the trust, she must prove that her expenditures drawn against that trust are legitimate. Go to the lawyer that executed the will and demand an audit of the trust fund's account activities going back to day one. Any expenditure that does not fall within the definition of living expenses of the arbiter, constitute fraud and can be sued for.
Find out what "ready for it" is defined in the will. As an adult you are legally able to assume control of the trust from the arbiter at any time whether the trust has matured or not.
The longer you wait the more she can spend so get on the stick immediately.

Answer 7

Ask to see a copy of the trust. If you are lucky enough to get it, read it. Many times one spouse will leave money to a surviving spouse and then it passes to his children at her death. It is possible that that is what the trust says. The trust could say anything and you don't know how to proceed until you know exactly what it says.

Sometimes states have rules that permit beneficiaries to obtain information in cases like yours. You might want to spend a few hundred dollars and talk to an estate and trust attorney in your state. You can locate a competent attorney that works with trusts and estates at www.martindale.com. There may be enough at stake that that would be a good expenditure.

I doubt if your dad put a provision in the trust allowing your step-mom to give the money to her children but no one can tell without reading the trust.

Step-families suck when it comes to estate and trust matters.

Good luck.

Jim Kirby, CPA

Answer 8

I'm not sure who led you to believe that the statute of limitations ran on child support. Below is a link that indicates there is no statute of limitations until satisfied. You should not file a will contest but a claim against the estate. You should contact an attorney because there is a time limit for filing claims once notice is given. A trust is a device used by some to avoid probating a will. Probate is a process that exists to administer someones will and a trust merely avoids that process, however, it does NOT avoid valid claims against the estate or the trust. Good luck

Answer 9

A trust can not be released to anyone accept the trustee. Who evers name is considered the "TRUSTEE" gets those allocated funds. Go out and grab a lawyer who will order a copy of the trust and this will all be decide. There will be no court battle. The trust ($$) goes to the trustee. Good luck and enjoy all the drama that comes with family money! FOR GOD'S SAKE, YOU ARE 28 YEARSOLD!

Answer 10

Hire a trust attorney and sue her as fast as you can. She does as surviving executor to your fathers estate have the right to spend moneys for legal expenses and distribution of the estate. But she can not withhold or alter the dollar amount or the timely distribution of your inheritance unless there was a clause stating such. Like if your dad wrote I give my son $100,000 on his 30th birthday, or he will receive it in installments over a 10 year period. She can not change the benificiaries to include her sons. Hurry before she spends it all.