Pre-Distribution Contract

What is the name of your state? CA

My parents passed during the past 15 months: my father in Dec 06 and my mother in Sep 07. I am a beneficiary in their trust, my brother is the Trustee and an associate of my mother's - who happens to be an attorney - named himself as co-trustee in the Trust two weeks before her death. This attorney is compelling my brother to require my siblings and I (7 in all) to sign a contract that essentially absolves the Trustee and Co-Trustee of any liability action and requires us to relinquish our rights to bring any action against them. The Trust already spells out that the Trustee is not liable for anything provided that he perfoms in good faith, and I don't feel that my brother is in any danger of performing in "bad" faith. My brother has indicated that he won't distribute the proceeds from the Trust until the 6 of us sign that contract. I am extremely reluctant to sign anything that signs away my rights since the attorney that I scarcely know is attached to the Trust and he has been less than forthcoming with us in the past 6 months. Is this contract legal and can they force us to sign it? Thank you

You will want to consult a local trust attorney before you decide whether to sign off on this or not. It's a standard form that beneficiaries are asked to sign so that you won't be quick to sue for invalid/inconsequential reasons--I don't think you have much to worry about.

Refusing to sign won't accomplish much, and signing will have the advantage of going ahead and getting your money released. Even though you sign the release, if you or the other beneficiaries find documented evidence of theft/misappropriation/stealing, you can still file charges against him and the release won't absolve him of the consequences, although he is fooling himself and trying to fool you all into thinking that. Beneficiaries can request an audit and an accounting statement and tax returns.

See if there is any mention in the trust of the trustee being exempt from having to post a trustee's bond.

DANDY DON IN OKLAHOMA ([email protected])

Dandy Don, Thank you for the advice.

I'd certainly check things out before signing such a statement, but don't be suspicious simply because of such a thing--it's standard.