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trust benificiaries

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B

blazer

Guest
WA. My three daughters are the benificiarys on my fathers trust, who has now passed away. The trust is being handled by a financial instution who was assigned by the court as trustee. They are allowed to draw funds out of the trust for college, down payment on a home, etc. with aprovial of the trustee. They will get the remaining balance when each one reaches thirty. What they are wondering is if they can turn there benificarys over to some one they trust so the new single benificary will inturn be able to give them all there money right away, and bypass the stipulations of the trust, while also avoiding the fees the financial instution is charging. For two of the benificiarys it will be another 12 years befor they reach thirty.
 


ALawyer

Senior Member
Your father seems to have been a wise man and set things up to protect your children from themselves and others. He knew that by age 30 most people have completed an education (and he allowed early distributions for that), started a career, started a family or are in a serious relationship, created a home (and he allowed money for a down-payment) and learned the value of a dollar.

If the trustee is not authorizing reasonable distributions for education or those and other real "needs" vs. "wants", your kids would have the basis to seek relief from the court. But I doubt the court will allow early full distribution, even if you and they trust the person who would pool the money.

Courts do not take responsibility away from a sound trustee who exercises discretion professionally and professionally manages the funds. As for the fees, they are approved by the court and probably worth the cost for protection. Unlike your kids o rmany others, at least the trustee didn't invest all the money in http://Priceline.com at $100 per share and watch it fall to $2. With trusts return OF PRNICIPAL is more important than return of principal.


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