Debts incurred by beneficiaries paid by trust funds

[shafted]

What is the name of your state? Oregon

My father has deceased a couple of years ago, and the estate has gone through the probate proceedure. The Will states that trust funds cannot be used to pay off debts incurred by its beneficiaries. What can be done if the Trustee is doing this? He has informed me that it is 'water under the bridge' and it is over now. Am I right to ask that these funds be paid back to the trust? Do I have a legal leg to stand on?What is the name of your state?

 

[BlondiePB]

What is the name of your state? Oregon

My father has deceased a couple of years ago, and the estate has gone through the probate proceedure. The Will states that trust funds cannot be used to pay off debts incurred by its beneficiaries. What can be done if the Trustee is doing this? He has informed me that it is 'water under the bridge' and it is over now. Am I right to ask that these funds be paid back to the trust? Do I have a legal leg to stand on?What is the name of your state?

What EXACTLY does the trust document say about this?

 

[shafted]

beneficiary debts incurred

The document reads exactly: "Spendthrift Protection: No beneficiary shall have any assignable interest in a trust or in the income of a trust. Neither the principal not the income shall be liable for the depts of any beneficiary. No beneficiary shall have any power to sell, assign, transfer, encumber or in any other manner anticipate or dispose of his or her interest in a trust or in the income of a trust prior to distribution by the Trustee to or for the benefit of the beneficiary. These limitations shall not restrict the exercise of any power of appointment or the right to disclaim."

The Trustee used trust funds to pay for a debt that one of the beneficiaries incurred. He said ownership was in question, but it is not in question now. He still says he will just let it go.

 

[BlondiePB]

The document reads exactly: "Spendthrift Protection: No beneficiary shall have any assignable interest in a trust or in the income of a trust. Neither the principal not the income shall be liable for the depts of any beneficiary. No beneficiary shall have any power to sell, assign, transfer, encumber or in any other manner anticipate or dispose of his or her interest in a trust or in the income of a trust prior to distribution by the Trustee to or for the benefit of the beneficiary. These limitations shall not restrict the exercise of any power of appointment or the right to disclaim."

The Trustee used trust funds to pay for a debt that one of the beneficiaries incurred. He said ownership was in question, but it is not in question now. He still says he will just let it go.

The entire trust document can be reviewed by a trust attorney who will advise you accordingly. Keep in mind the cost of all this. Not only to you, but to the trust. The Trustee can have the trust pay his/her attorney fees.