Demand note....looking for blondie or dandy don answer

[hootie7]

What is the name of your state? Ohio
A new trustee is being appointed to our father's trust fund, due to several issues and questionable activity on bank statements by the trustee. My question is simply this: this stepsister (the trustee) allowed her sister to purchase our Fathers double wide trailer for $30,000. (The trustee did not even offer this sale to any of the other 9 beneficiaries and no one knew about the sale until our attorney received all of the paperwork during the probate process). She only put $6,000 down on this trailer in May of 2004, and signed a Demand note for the balance of $24,000. The trustee also put in the note under "Payment of the Loan" that the "Maker authorizes the trustee of the Trust to pay the lender from Maker's distributable share of said trust". I take this to mean that this stepsister who bought the trailer will pay for it out of her distribution from the trust fund. She has paid no rent and has lived in this trailer for the last year . The trust has made no income in rent or interest from the sale of this piece of property. My questions are these: I know that the new trustee can call up the demand note and request payment. The trust fund is not being closed out at this point in time and no distributions will be made due to serious financial issues from the previous trustee. Does the new trustee have the ability to nullify this demand note since it was not in the best interest of the beneficiaries of the trust? Or can the new trustee demand payment immediately since the trust fund is not being distributed at this point in time, not allowing her to use her share of the trust disbursement for payment? Last question, can the new trustee start charging rent for this piece of property? Blondie and Dandy Don........you have been very helpful in the past, and to let you know, the attorneys came at a price but was very well worth it. This whole case is being revued now by members of the Attorney General's office in Ohio for a case of Financial Exploitation against the elderly (hundreds of thousands stolen/missing).....Thanks for all of your advice before! It's nice to know their is justice in this world even when things seem at their darkest!!!

 

[BlondiePB]

I know that the new trustee can call up the demand note and request payment. The trust fund is not being closed out at this point in time and no distributions will be made due to serious financial issues from the previous trustee. Does the new trustee have the ability to nullify this demand note since it was not in the best interest of the beneficiaries of the trust? Or can the new trustee demand payment immediately since the trust fund is not being distributed at this point in time, not allowing her to use her share of the trust disbursement for payment? Last question, can the new trustee start charging rent for this piece of property?

If the terms of the trust document say so, yes, yes, and yes. You really need to ask these questions to your attorney who, obviously, has the trust document to read.

Blondie and Dandy Don........you have been very helpful in the past, and to let you know, the attorneys came at a price but was very well worth it. This whole case is being revued now by members of the Attorney General's office in Ohio for a case of Financial Exploitation against the elderly (hundreds of thousands stolen/missing).....Thanks for all of your advice before! It's nice to know their is justice in this world even when things seem at their darkest!!!

Great!! Thanks for the update, and you're very welcome for the help. I just love it when embezzlers get caught.

 

[hootie7]

Blondie: You know the old saying...."give someone enough rope and they'll hang themselves!" Thanks for the info.

 

[Dandy Don]

To prevent possible further financial abuse by a trustee in the future, ask your attorney if it would be a good idea to ask a court to require that this trustee and future ones be required to post a trustee's bond to protect the financial interests of the beneficiaries, if there is no stipulation in the trust that specifies that no bond needs to be purchased.

DANDY DON IN OKLAHOMA ([email protected])

 

[hootie7]

Unfortunetly Dandy don the trust does state that No bond is required of any trustee..........Incredible but true......The trustee that is being removed is the person who set my fathers trust up and made herself Trustee and executor of the will. She definetly had a license to steal. The will stated that the Executor (the stepsister) would turn all of the receipts over to the Trustee (the same stepsister) and that the trustee by giving the Executor a receipt for all, "Absolved" the Executor of any further liability. So she "absolved" herself or any wrongdoing by herself.....Is that not incredible?? The only person who had to sign off on the final accounting for the probate was the executor since the will stated that the Trust fund was the beneficiary of the will.........we are the heirs and beneficiaries of the trust. I can not believe the attorney who set this up, knowing that the executor and the trustee were one and the same allowed that language. Because we heeded yours and blondies advice, and retained an attorney, our attorney received the final accounting from the probate court, and the number of items listed in the original inventory, never appeared in the final accounting...no record of sale of the items, no items. Whats even more incredible is that although the numbers did not match up, and personal property was missing..........The Court STILL approved the final. And this attorney signed off stating "that this was true and correct"....same attorney who set everything up. This case has all the makings of a movie of the week........Now that the state is getting involved, next course of action is to see if the Attorney who oversaw this estate bears any liability.......Another set of attorneys checking into this......Financial exploitation of the the elderly, Theft by the trustee, and possible malpractice by the estate/Trust Attorney...to say the least the past year has been very tiring! but perserverance pays off!!!