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grandfather's trust

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TRUSTWORTHY

Junior Member
What is the name of your state? MA
Grandfather passed away 6 months ago. He had set up a trust in 1992 with his 3 grandchildren as the sole beneficiaries. His lawyer now states that he was the only beneficiary of the trust. According to him the funds administrator will release the funds to a successor trustee nominated by the originally named three beneficiaries in order to avoid probate. He suggest we name him as the new trustee and he will give us our share minus his fees . If the trust was ammended there are no forms stateing this. Also a nephew had grandfather type a new will 2 years ago naming him to receive all remaing assets. Grandfather's lawyer is stating nephew will get half of the trust. We contacted the lawyer who originally set up trust and he said it sounds like a good deal. I think something shady is going on. Not sure how to proceed.
 


Dandy Don

Senior Member
Who is the "funds administrator"?

It sounds like the lawyer may have used undue influence to get a new trust created to his benefit, and the nephew may or may not have used undue influence regarding the will. Consult with a local trust attorney who is experienced with trusts and probate to figure out your options to have both documents evaluated to see if either could be contested by the disinherited beneficiaries if there are strong enough legal grounds.

If you have not already seen a copy of the trust, ask your attorney what your state law says about whether you have rights to a copy of the trust. And get your grandfather's attorney's background checked out to see if there are any complaints against him with the state bar association and whether there are past criminal charges. You may be correct when you suspect something shady is going on here, but right now you have no proof of such. But your lawyer may be able to help you find it if it exists.

DANDY DON IN OKLAHOMA ([email protected])
 

TRUSTWORTHY

Junior Member
I don't know who the funds administrator is. The other question I have is why would a person set up a family trust and make themself the sole benficiary?
 

Dandy Don

Senior Member
It's hard to speculate without knowing all of the facts, but it looks like this lawyer may be a bit shady and assumed he was close enough to your grandfather so that he could manipulate/steal his finances by taking advantage of the friendship. Even more stupidly, he thinks he will get away with it without any consequences.
 

TRUSTWORTHY

Junior Member
I did find out that this lawyer hangs around senior centers for business. The lawyer did not make himself the benificary he told my grandfather to make himself the benificary of his own trust. What would be the advantage of that? The reason the trust was set up was to avoid probate after his death. This is not a second trust this is the original one. There is no ammendment on file with the city. My understanding was that any changes to a trust needs to be ammended,
 

seniorjudge

Senior Member
If you are saying that a lawyer drew up a trust naming the lawyer who drew up the trust as a beneficiary, then you need to report that lawyer to the disciplinary committee of your state bar.
 

TRUSTWORTHY

Junior Member
No the lawyer is not the benificiary but the only way we can avoid court is to make himself and the lawyer we spoke to the trustees. Then they will take their fees and split the difference between us and the nephew. Also the nephew and grandfather's lawyer will no longer honor the will sense the nephew now has to split the trust with us. Which this nephew also talked grandfather into selling his house to him for half the marked value which is another reason why if we could afford to we would go to court.
 

anteater

Senior Member
I did find out that this lawyer hangs around senior centers for business. The lawyer did not make himself the benificary he told my grandfather to make himself the benificary of his own trust. What would be the advantage of that? The reason the trust was set up was to avoid probate after his death. This is not a second trust this is the original one. There is no ammendment on file with the city. My understanding was that any changes to a trust needs to be ammended,
Wait a minute. My head is starting to spin. Grandfather created a trust that named himself the beneficiary? Then, how are the 3 grandchildren the "sole beneficiaries?"

Retain your own attorney.

Addition: And how did the nephew end up having anything to do with the trust?
 
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TRUSTWORTHY

Junior Member
The funds administrator (who ever that is) will only release the funds to a successor trustee nominated by the origianl 3 beneficiaries, which is the grandchildren.
The nephew was named in grandfathers will (which they are not filing) to recieve all remaining assets which is why he thinks he should get everything in the trust.
 

lwpat

Senior Member
The will and the trust are totally separate. You need an attorney becasue you are very confused and until you get some facts posting on here will not help.
 

TRUSTWORTHY

Junior Member
We have a lawyer who gave us a copy of the will. There is no mention of the trust.
It just states that after a few people he named in the will get their share his nephew will recieve all remaining assets.
One of the many reasons I am confused is a letter from grandfathers lawyer states the fund administrator would not release the funds until we name a new trustee to the trust. If grandfather was the sole benificiary of this trust why would
we have the right to name a new trustee. Is this a common practice? We just can't get a straight yes or no from our
lawyer.
 
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anteater

Senior Member
.... If grandfather was the sole benificiary of this trust why would
we have the right to name a new trustee. Is this a common practice? We just can't get a straight yes or no from our
lawyer.
There you go again with "..grandfather was the sole beneficiary..." while, at the same time, saying "....with his 3 grandchildren as the sole beneficiaries." Do you mean that your grandfather was the trustee? Do you even have a copy of the trust?

Why don't the three of you grandchildren get together and decide which one of you will be the successor trustee?
 

TRUSTWORTHY

Junior Member
I'm saying his lawyer states that grandfather was the trustee and the sole benificiary of the trust. He is stating that the grandchildren are not in anyway the benificiaries. But the funds administrator will not release the funds until we name a trustee. If according to grandfathers lawyer we are not the benificiaries of the trust why do we have a right to name a new trustee. By the way he is asking that we name him the new trustee in order to avoid probate court.
 

Avalon

Member
The missing pieces of your story are -- How do you know the original trust was set up for the three grandchildren -- do you have a copy of it? How did the trust get changed from the three grandchildren as beneficaries, to your grandfather as sole beneficiary? Sounds like his lawyer is acknowledging you were the beneficaries at some point. The whole thing is confusing.
 

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