Moving childrens trust funds

What is the name of your state? OH
My children and I are beneficiaries of a trust set up by a family member. I am receiving cash and my three children have trusts set up that they can get for college at eighteen or cash out at 27 if they decide not to use for college.

Last Feb we were told all federal and state taxes had been paid and that dispersements would happen in May. When May rolled around, we were told that they had to wait for "tax clearance letters" and this would take six months. We informed them that we were planning on buying a house and that we had hoped to do it during the summer so we did not have to make our kids change schools mid year and they agreed to pay out 75%.

After seven months had passed, I contacted them asking about payment and was told that they didn't know why anyone told us six months, it takes 18. They did state that the Federal clearance letter had been received and they are awaiting the letter from OH now.

It is now going on 12 months since taxes were paid and they are still holding my money. My wife does hair color and has had a few clients who are attorneys and accountants tell her something doesn't seem right and we should request copies of all tax forms they submitted and copies of the "clearance letters".

My questions are: Would it be helpful to have an attorney draft and send the letter requesting this information, and if so, what type attorney am I looking for?

Second question: I am fed up with dealing with these people and feel they are holding onto my family's money to use to loan out to others as this is a bank. I don't want my kids to go through a huge ordeal getting their college money down the road causing them to miss a semester or something. Is it possible for me to get their trusts moved to another trust company to handle them, keeping the same terms as set forth in the original.

You need a one or two hour consultation with a local trust attorney to find out if Ohio law allows beneficiaries to ask for a copy of the trust and an accounting statement and tax returns (that is, if you do not already have a copy of the trust).

Did the family member die in Ohio?
Do you know how much cash you and your children will reportedly be receiving?
Do you know who the trustee is--is it a person or a trust department of a bank?

It would be preferable for your attorney to draft the letter for you--that way the trustee will see that you are serious about getting answers and won't easily be brushed off like he might do if you were to write the letter yourself. Ask your attorney whether you can ask that a trustee's bond (to protect the financial interest of the beneficiaries) be purchased unless the trust specifically exempts this requirement. Yes, something fishy may be going on here (discuss with your attorney whether it would be prudent or timely to ask for an audit or not) since they are stalling/reluctant to provide you with details you are entitled to receive.

DANDY DON IN OKLAHOMA ([email protected])

Thanks for the reply Dandy Don,

To answer your questions, yes, she did die in OH, I do know the amounts my children and I are supposed to receive and the trustee is the trust dept. at the bank.

Just for the heck of it this weekend I emailed the OH Department of Taxation and inquired if the "tax clearance letter" we are waiting on had been sent to the bank yet. I am guessing they probably can't give me any info, but I'm trying anything at this point.

I have been trying to stay on top of this, but since it's the first time I have ever dealt with this situation, I'm a little in the dark about how to go about it. These people may be on the up and up and I'm just being paranoid, but there have been a few suspicious things done along the way.

Immediately after her death, the bank had my wife and I come down with a truck and help go through her belongings. We helped them locate any items that were left to others and everything else was left to me. About four months later about $6,000 worth of diamond rings was delivered to my doorstep out of the blue. I have no idea where these were located because they were never mentioned to me or seen the day we went through the storage unit. It made me feel someone intended on pulling a fast one and thought better of it a few months later and sent them out.

Also, there was a farm that had to be sold. They had an appraisal done and it was valued at 1.2 million. Along with the appraisal, they sent a letter stating that they had an offer from the person that had been renting the farm of $800,000 and they suggest we take it. This person making the offer also happens to be on the board of the bank handling the trust. We declined the offer, had them list it and within 2 months got 1.5 for it. I thought it seemed a little unethical to try to get us to take such a huge loss on an offer made by someone at the bank without trying to do better first.

Also, the timelines given to us for the "clearance letters" keeps changing. Originally it was six months and we were told it is usually no earlier than that, usually six months exact. Later this changed to 12 months and now 18.

I did actually receive a response from the Ohio Taxation Department about my inquiry if the "clearance letter" had been sent to the bank yet. Unfortunatley as I expected, they couldn't tell me any info, but I did find the last line interesting. Here is their response.

"(Answer) For estaet tax purposes our files are confidential prusuant to
section 5731.90 Of the Ohio Revised Code. However, I do suggest you
contact the attorney or the trustee of the estate for additional
infomation."

That last line almost makes it sound like, we can't tell you anything, but the letter has been sent.

That last line almost makes it sound like, we can't tell you anything, but the letter has been sent.

Click to expand...

I think that you are reading too much into that.