Distribution of Trust

What is the name of your state (only U.S. law)? Arkansas

Hello all,

My mother passed away in Arkansas in 2007. The estate is coming to a close, there are no debts/fees to be paid. There is $75K in a trust account. The trust stipulated I am to be age 35 when it is released to me. I have a good relationship with the trustee, and I would like to have control of this money now (I am age 29). Since both my parents are passed on, I have become fiercely self-reliant and wish to be in charge of my own affairs. Again, I am on good terms with the trustee, but before I even ask him about turning over the trust to me, I want to know is he legally able to do so, since there was an age stipulation in the trust? Like even if he is fine with just giving me the trust account, would he not be able to do so, or would that be at his own discretion as the trustee? I am an only child, so I am the sole beneficiary, so there are no weird entaglements here, a very simple case. I would just like to be able to save and invest this money as I see fit, since it is what was left to me. I just don't know how much the age stipulation matters if he (the trustee) is fine with giving me control of it. Is it something that can be done? If so, can he just do it himself or would it need to go through the court somehow? Thanks for your advice

He cannot do so legally, but who is going to know? If you are the only beneficiary of the trust the law will never find out in the first place and no one will have standing to sue in the second.

He should not do so morally. He was made trustee to enforce the wishes of the grantors and to not follow the trust would be a moral breach.

He also shouldn't do it for a practical reason. Let's say you get the money and you spend it all on hookers and beer. The rest, you waste. You could sue the trustee for fiduciary breach! While there would be some issues on exactly the wording and what was done, you'd probably win too.

If your desire is to "be able to save and invest this money as I see fit", and you have good relationship w/trustee, then no reason why you can't also suggest investment alternatives to him/her.

They're under no obligation to follow, but would be a win/win.

Why not change trustees? As the new trustee you would be in control of the investments. You would not access the assets of the trust until age 35, however.

If the sole beneficiary can appoint the trustee the trust merges and disappears. No lawyer would make an irrevocable trust with that error.

Thank you. This is a good illustration of the strength and weakness of trusts/trustees. As we have experienced on just this forum, the good news is that trustees have a great amount of oversight of assets. The bad news is that trustees have a great amount of oversight of assets. In this case the trustee seems to be cooperative.

Well in this case, my mom appointed this person the trustee before she died. There is $75K in the trust. Here's what I want: (again I am sole beneficiary). I made a few investments in rental properties with her life insurance money (this seemed wiser than letting it sit in a savings account or a risky stock account the way the market has been lately). Right now, due to unexpected repairs,tenants moving out unexpectedly, and I have gotten behind on one property and they are filing foreclosure on one. I calculated I need 23K to be out this hole free & clear. I have also not worked since April (I work in IT and all my jobs are contracts, and not that I didnt' try, but this was a crap year as far as jobs went). I have a new job started to start at the end of October, but its too little too late. My hole is way to big to wait for that job to start and to wait another few weeks to get paid. I wanted to take the23K out to settle up everything that's gotten behind. Even the condo where I live is two months behind and I am this close to having to vacate. That money would be a godsend to me right now, but the estate lawyer said he could give me an 8000 distribution, but thats a drop in the bucket at this point. Ijust dont want to see all m y hard work with this property have amounted to nothing if its foreclosed (I renovated it from the ground up). Is there no chance I could get $23K from the trust at all? It's so frustrating, that money was left here by mom to help me, and dammit I need HELP right now! Idont want all the money, just that much to get me on my feet and after my properties are caught back up, I won't need more help (it was working great before I was unemplyed for sixth months and things just got out of control). Is there nothing they can do to help me here??

What you "want" is irrelevant. It makes no difference. It has *no* legal value.

What the trust says is completely relevant.

What the OP thinks is a good financial strategy has no relevance unless he has a professional who disagrees with the fiduciary. Then, the issue changes. But. that is not the end of a complex interaction of many issues. Those who disagree need thousands of dollars for attorneys in their pockets.

I made a few investments in rental properties with her life insurance money (this seemed wiser than letting it sit in a savings account or a risky stock account the way the market has been lately). Right now, due to unexpected repairs,tenants moving out unexpectedly, and I have gotten behind on one property and they are filing foreclosure on one. I calculated I need 23K to be out this hole free & clear.

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And this is why there are trustees.

I have a similar situation with one of the trusts I manage. If I would have chased every 'great' investment the beneficiary requested over the last 20 years, there would be nothing at this point.