phaminator
Junior Member
What is the name of your state (only U.S. law)? CA
My mother passed away recently (my father passed away years ago) and had a trust but no will. The trust calls for a sub-trust to be established for two (adult) siblings but, of course, these two beneficiaries are pining for a lumpsum distribution like everyone else. As trustee, is it my fiduciary to carry out the trust as stated or is it at my discretion to form or not form a subtrust? Is this a matter of ethics rather than law?
Here's the exact wording of the subtrust section:
"Until a child's subtrust ends, the trustee may distribute to or use for the benefit of the beneficiary as much of the net income or principal of the child's subtrust as the trustee deems necessary for the beneficiary's health, support, maintenance or education. Education includes, but is not limited to, college, graduate, postgraduate and vocational studies, and reasonably related living expenses. In deciding whether to make a distribution to the beneficiary, the trustee may take into account the beneficiary's other income, resources and sources of support. Any subtrust income that is not distributed to a beneficiary by the trustee shall be accumulated and added to the principal of the subtrust for that beneficiary. The trustee of a child's subtrust is not required to make any accounting or report to the subtrust beneficiary."
As for the trust itself, there is language giving the trustee full discretion in distribution similar to the language above.
Is there any sort of waiver or release they can sign to protect me from future legal actions resulting from the lumpsum distribution?
My mother passed away recently (my father passed away years ago) and had a trust but no will. The trust calls for a sub-trust to be established for two (adult) siblings but, of course, these two beneficiaries are pining for a lumpsum distribution like everyone else. As trustee, is it my fiduciary to carry out the trust as stated or is it at my discretion to form or not form a subtrust? Is this a matter of ethics rather than law?
Here's the exact wording of the subtrust section:
"Until a child's subtrust ends, the trustee may distribute to or use for the benefit of the beneficiary as much of the net income or principal of the child's subtrust as the trustee deems necessary for the beneficiary's health, support, maintenance or education. Education includes, but is not limited to, college, graduate, postgraduate and vocational studies, and reasonably related living expenses. In deciding whether to make a distribution to the beneficiary, the trustee may take into account the beneficiary's other income, resources and sources of support. Any subtrust income that is not distributed to a beneficiary by the trustee shall be accumulated and added to the principal of the subtrust for that beneficiary. The trustee of a child's subtrust is not required to make any accounting or report to the subtrust beneficiary."
As for the trust itself, there is language giving the trustee full discretion in distribution similar to the language above.
Is there any sort of waiver or release they can sign to protect me from future legal actions resulting from the lumpsum distribution?