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Trustee dilemma

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STARR Foster

Junior Member
What is the name of your state (only U.S. law)? Maine

I have a dilemma.

My daughter, Deb and I are trustees for a SNT for the daughter of the deceased who was my cousin.

For one thing, Patricia, the beneficiary, has expressed her desire to have Deb go to get her, about 175 miles round trip, to bring her to my home for a two-week visit (she calls it her vacation!) and take her shopping and sight-seeing etc. At this point I have told her we would try to do it. Deb will use my vehicle to do the driving and will need to be paid for her time to and fro and in between. Deb and I both are on limited budgets so payment is important. I understand that it is okay for the Trust to pay for vacationing for Pat, including lodging and food under the vacation rules. I would like to be sure Pat has a great time and that we do nothing to jeopardize anything. Also Pat has expressed desire to go on a cruise and have a companion to go with her. Could Deb be that companion? Pat has expressed several times her desire to have Deb spend time with her. It makes me somewhat uncomfortable but I don't want to hurt her feelings. She has made improvements in her ways in the last year or so according to her care giver teams. I hope it continues.

I guess it all boils down to needing to know that it is okay to be paid as Trustee as well as **************.... ( I don't know what to call it...) maybe care-giver, instead of companion or what.

We have not been close to Pat over the years. She is 59 . however since her mother's death she has depended very much on us and her care-givers tell us she has improved in many ways and it is mostly due to our attention to her.

Should either my daugher or I get out of being Trustee? Can we be reimbursed for vacation expenses. Can my daughter serve as companion when wanted by Pat? I want to continue helping Pat but we do need financial payment for some of the extra actions needed. We do not want to upset the applecart with the special needs and we do understand what is required to keep it working except for this one dilemma. Please help.
 


curb1

Senior Member
What are the assets of the trust? That is of concern if you are needing to fulfill a fiduciary obligation to make sure the assets are there for her life.
 

curb1

Senior Member
So, she could live 20-30 more years. In your position, you need to handle the assets prudently. Be careful how the money is spent. "Pat" might not realize that there is a finite budget. Reimbursement for what you do is appropriate, but be prudent in what you do.
 

Kiawah

Senior Member
I paid 3-4K per month for assisted living, 6-7K for nursing home type care, plus medical. Be very very careful with her spending.
 

STARR Foster

Junior Member
Thanks for input . I guess my dilemma is not clear to everyone. If we do what Pat wants us to do and get paid for some of the time involved are we being fair to Trustee duties? To help Pat do trips and visits would we be putting the Trust in jeoprady? I don't want to tell Pat we cannot let her have the visit she is so excited about because the Trust shouldn't help out with the expenses. I don't know where to go from here.

Thanks, anyway. :(
 

curb1

Senior Member
Is Pat mentally capable? If yes, and she understands economics and personal finance then do as she wishes if the trust gives you that leeway. Is there anything written in the trust that would give you guidance?

If Pat is not mentally capable you have a strong financial responsibility to be prudent with the assets. If a reasonably responsible person would consider the activities as acceptable then your expenses would be considered allowable.
 

Kiawah

Senior Member
Having the trust pay for your vacation would look horrible, upon inspection by anyone a year from now. I would even think that from a Medicare perspective, if she get's to the point that would medically qualify for nursing care, that when they do a five year lookback of spending these would be considered gifts, and potentially disqualify her from getting Medicare for some number of months.

I would think any payments for companionship, would also likely be considered gifts. It's not like you are hiring a professional company to provide some necessary medical service an hour a day, or a cleaning service 4 hours a week.
 

STARR Foster

Junior Member
It would definitly NOT be a vacation for me, or for my daughter. Pat is not mentally capable of handling finances, as well as other aspects of living. She has also expressed a desire to have a room added to her home and landscaping done. We have already taken care of her water system, and she had a trip to Graceland, something she has wanted to do for years. I want to see her be happier than she has been but I don't know where to draw the line on her present wishes. Paying a taxi would certainly cost more than what we could do it for, and I am not sure a taxi driver could handle her actions. Someone would have to bring her here and do for her the things that are now done by her care-givers, when she is at her home.
Well, I will continue to figure it out. It helps to have the feedback I have been getting. It does help me to see things from a different viewpoint.
Thank you all.
 

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