exutor or trust?

[maril]

executor or trust?

What is the name of your state? Texas
Can an executor set up a trust for one of the adult heirs to keep control of the estate when nothing was mentioned in the will about it?

 

[Dandy Don]

When is the trust going to be set up--before the death of the person who is leaving the estate money, or after that person's death?

Has the death already occurred or is it still expected to occur at some point in the future?

Has any distribution of monies from the will already occurred or is the estate still in probate now?

What would be the value of the trust?

Please explain how you think or what the reason is that "control of the estate" is going to be achieved.

DANDY DON

 

[maril]

Sorry for not giving more info.
The person is disceased. The executricx(daughter of disceased) set up the trust for the 38 year old son after the the death of the father. There was no mention in the will that she should do this. The son is healthy and mentally sound. The executrix and the attorney for the estate set it up without telling him. The sons part was around $500.000.00. He is unmarried and the executrix son is his only heir. It sounds to me like executrix tied up the sons portion of the estate in order to preserve it for her son.

 

[maril]

Whoops. It has already been through probate and the trust is set up. The heir(brother of the exutrix) was not informed. She just told him he would get monthly checks. Bad investments were made by the broker and when the heir tried to move his accounts to another firm he found out that he could do nothing because it is a trust and the executrix is the only one who can touch it.

 

[maril]

Sorry for so many replies. The reason I am involved is that I am executrix of the mothers(still living) estate. The mother did not want her daughter to have any control of her estate but was afraid the daughter would give the son trouble. The mother found out that this same broker was sending duplicates of her own investment statements to the daughter without her permission. The son asked me for advice.
I would also like to know if gross mismanagement of a trust is grounds to have the court break the trust or appoint another person(not me).

 

[Dandy Don]

Daughter (and attorney for the estate) DID NOT have authority to set up the trust with the son's money. Please advise the son to consult with a trust attorney or a probate attorney to find out what he needs to do to get the trust dissolved. His attorney of course should also review the father's probate file to get other information on how that estate was handled and whether the executrix was required to be bonded or not.

Did son (or you) ever receive a copy of the trust so that you would be informed as to what type of trust it is? This is not really important but just something I was wondering about.

Whether or not gross mismanagement of the trust has occurred is something that still needs to be determined. Broker can not necessarily be held responsible for a downturn in the stock market (if that is in fact what actually happened) but if the choice of investment vehicles he chose was known to be risky or unreliable then perhaps he could face charges either in court or by arbitration (an attorney or the National Association of Securities Dealers website can advise you about this aspect) to try to recover partial or full damages as compensation.

Son will probably be able to get whatever money is left by getting attorney representation. If it turns out the executor/trustee is bonded, he would want to investigate whether he could file a claim with the bonding insurance company to recover any monies that were stolen/misappropriated. If executor/trustee is not required to be bonded, then his only choice to recover the missing money might be to file a lawsuit against executrix/trustee. Attorney will also want to look at the language of the trust to find out if there are any penalties written in there to penalize the trustee if mismanagement occurs.

This is the most outrageous attempt at deception I have ever heard of!! How did she think she would get away with it???

DANDY DON ([email protected])

 

[maril]

The son never got a copy of anything. The sister(executrix) kept everything. Part of the money pays income and the other is just invested. He has been paying taxes on profits but can't touch it. It has cost him alot. He called the company that pays the income and the secretary just told them they had made bad investments lately.I thought this was strange. The broker or firm just paid a huge sum in fines. This sounded like a real mess when the son and mother were telling me about it. The daughter is well off but nuts and has been charged with shoplifting a couple of times. She is no longer welcomed in the mothers house because she was stealing things. The mother says she is afraid of her.