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Does a minor beneficiary have rights?

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singagospelsong

Junior Member
What is the name of your state? INDIANA

My 14 year old nephew came to live with us in Nov. 2007, my husband and I were appointed his permanent guardians in Jan. 2008.

His mother passed away from cancer in 2002 (his fathers parental rights were terminated in mid 2007).

My sister-in-law is the trustee for the estate that was left to our nephew, who is the sole beneficiary. In accordance with the will, he is to receive the balance of the trust at the age of 30. No one in the family knows exactly what was left to him or what the current status is of the account. But there is speculation it was originally in the area of $300,000. Does he as a minor or us as his guardians have a legal right to know what was left to him?

Additionally, there is question as to whether there has been improper use of funds from the estate. We requested a copy of the beginning balance and current balance on the account. First call (6 weeks ago), a nervous response was - no problem. Second call (2 weeks ago), haven't had time to pull it. Third call (last night), its non of your *^%&!*$ business. This has only served to increase suspicion.

1. There was a house (paid off) in the estate which has sat empty for over 6 years. The sister-in-law's husband has a miscellaneous contruction work type business. They have been providing the routine maintence & lawncare on the house this whole time...seemingly drumming up issues to work on, tearing down privacy fence, remodeling, etc.

2. Three months ago, they decided to bring on a tenant in the house, but there is no indication as to where the rent money will go. They have also indicated to the tenant that they plan to sell the house in a couple of years.

3. Brother-in-laws construction business has been on the downward spiral. Approximately a year ago he his employees go. He has had several companies with the same purpose/different name in the past.

4. Sister-in-law doesn't work, yet they have taken three Colorado Skiing trips this year?

My greatest fear is what was intended for this child, who has been through more than one should have to, will be gone.

Is there an agency that can ensure for us that the funds are not being mis-used? I don't even care so much if we know the dollar amounts to our questions, as much as, I'm desperate to be sure they are not robbing this child.

Nothing has been spent from it related to the child. Not for his braces, we've been told, not for college, nothing.

We have 3 teenagers, and not much extra to pay attorney fees, etc. I would greatly appreciate any advice you can give.

Please forgive for the repost, but I wasn't sure how to go back and make my title more interesting! :D
 


anteater

Senior Member
Please forgive for the repost, but I wasn't sure how to go back and make my title more interesting!
You don't have to re-post just to make the title more interesting! :(

I doubt that you will find an agency that will intervene in a trust matter, particularly when there is only suspicion. Try calling a few trust/estate attorneys to see if they will give a quick, free consultation. It could be that a strongly worded letter will be enough to shake up the trustee.

A quick search of the Indiana code turns this up:
IC 30-4-5-12
Accounting by trustees
Sec. 12. (Accounting by Trustees)
(a) Unless the terms of the trust provide otherwise or unless waived in writing by an adult, competent beneficiary, the trustee shall deliver a written statement of accounts to each income beneficiary or his personal representative annually. The statement shall contain at least:
(1) all receipts and disbursements since the last statement; and
(2) all items of trust property held by the trustee on the date of the statement at their inventory value.....
 

singagospelsong

Junior Member
Thanks for the Code!

Thank you very much for the code.

It seems that a statement of some sort is a legitimate request and should already be part of the process.

I don't seem to have a choice but to contact an attorney.

God bless!
 

Dandy Don

Senior Member
You can look up Indiana code by using a search engine, and look for the section relating to probate and/or trusts specifically. Look for notification to beneficiaries--many states allow the beneficiary (or his attorney) to send the trustee a certified letter requesting a copy of the trust plus accounting statements for each year the trust has existed and also federal and/or state income tax return copies if applicable. As guardian, you may not be technically eligible to ask for the copy of the trust--the request may need to come from the beneficiary himself or his authorized representative.

You also need to look at the probate file to see for your own personal information exactly how the estate was handled and whether the trustee is also the executor. The trust and the will are 2 different documents that are administered independently of each other--the trust is administered privately out of court and the will is probated publicly, in court.

Why did you wait so long to look into this?

Certainly looks like there is enough cause here to at least suspect the trustee of breach of fiduciary duty, but your attorney can help you evaluate that after you get a copy of the trust and can then decide whether the beneficiary needs to request an audit or not or whether to ask that a trustee's bond be posted if the trust does not specifically exempt that requirement.

Hope it turns out to be good news for your nephew!

DANDY DON IN OKLAHOMA ([email protected])
 

BlondiePB

Senior Member
What is the name of your state? INDIANA

My 14 year old nephew came to live with us in Nov. 2007, my husband and I were appointed his permanent guardians in Jan. 2008.

His mother passed away from cancer in 2002 (his fathers parental rights were terminated in mid 2007).

My sister-in-law is the trustee for the estate that was left to our nephew, who is the sole beneficiary. In accordance with the will, he is to receive the balance of the trust at the age of 30. No one in the family knows exactly what was left to him or what the current status is of the account. But there is speculation it was originally in the area of $300,000. Does he as a minor or us as his guardians have a legal right to know what was left to him?

Additionally, there is question as to whether there has been improper use of funds from the estate. We requested a copy of the beginning balance and current balance on the account. First call (6 weeks ago), a nervous response was - no problem. Second call (2 weeks ago), haven't had time to pull it. Third call (last night), its non of your *^%&!*$ business. This has only served to increase suspicion.

1. There was a house (paid off) in the estate which has sat empty for over 6 years. The sister-in-law's husband has a miscellaneous contruction work type business. They have been providing the routine maintence & lawncare on the house this whole time...seemingly drumming up issues to work on, tearing down privacy fence, remodeling, etc.

2. Three months ago, they decided to bring on a tenant in the house, but there is no indication as to where the rent money will go. They have also indicated to the tenant that they plan to sell the house in a couple of years.

3. Brother-in-laws construction business has been on the downward spiral. Approximately a year ago he his employees go. He has had several companies with the same purpose/different name in the past.

4. Sister-in-law doesn't work, yet they have taken three Colorado Skiing trips this year?

My greatest fear is what was intended for this child, who has been through more than one should have to, will be gone.

Is there an agency that can ensure for us that the funds are not being mis-used? I don't even care so much if we know the dollar amounts to our questions, as much as, I'm desperate to be sure they are not robbing this child.

Nothing has been spent from it related to the child. Not for his braces, we've been told, not for college, nothing.

We have 3 teenagers, and not much extra to pay attorney fees, etc. I would greatly appreciate any advice you can give.

Please forgive for the repost, but I wasn't sure how to go back and make my title more interesting! :D
This is a Testamentary Trust established by a will. Go to the courthouse (probate division), review your ward's mother's probate file. There should be a file for him regarding the trust. Trustees of testamentary trusts need to file an accounting with the court.

If you send me a private message, I can assist you with some of your other issues for your ward. Did all this (probate) happen in Indiana?
 

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