Changing an irrevocable trust?

[n78949]

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

Please,

Mom died in May leaving a trust (irrevocable upon her death). All assets were financial (stocks, bonds, C.D's. insurance, etc.). Her three children were (are) equal beneficiaries. Youngest child is successor trustee (geographically closest). Only one copy of the trust existed; it is in possession of trustee or her retained atty. The trustee is uncommunicative - doesn't answer the phone or return messages; doesn't respond to e-mail.

Trustee now wants to make a gift to a person not named in the trust document. This gift amounts to 12% of the trust and is intended to be removed from the trust before any distribution to any named beneficiary. Can the trustee do this?

If I, a named beneficiary, contact the atty hired by the trustee, will I likely be provided any applicable information about the status of the trust and distributions therefrom or is the atty's sole duty to the trustee?

Am, I entitled to a copy of the trust document?

In June the trustee finished disposing of all Mom's personal property, emptied Mom's apartment and returned possession to the landlord. What is a reasonable (typical?) amount of time for the trustee to distribute the remaining assets in this type of situation?

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

 

[tranquility]

Trustee now wants to make a gift to a person not named in the trust document. This gift amounts to 12% of the trust and is intended to be removed from the trust before any distribution to any named beneficiary. Can the trustee do this?

What does the trust document say as to the trustee's powers? If nothing, then it is unlikely a gift would not be a breach of fiduciary duties by the trustee.

If I, a named beneficiary, contact the atty hired by the trustee, will I likely be provided any applicable information about the status of the trust and distributions therefrom or is the atty's sole duty to the trustee?

The sole duty is to the trust through the trustee. You will have little or no interaction with the attorney.

Am, I entitled to a copy of the trust document?

Yes. On a request by the beneficiary the trustee is supposed to provide information regarding the running of the trust. Many states have a specific deadline for how long the trustee has to provide a copy of the document to beneficiaries after it becomes irrevocable. I could not find Indiana's statute with a quick look.

In June the trustee finished disposing of all Mom's personal property, emptied Mom's apartment and returned possession to the landlord. What is a reasonable (typical?) amount of time for the trustee to distribute the remaining assets in this type of situation?

Can't guess without being involved. Lots of things can hinder distribution.

 

[n78949]

Thank you, tranquility. That is very helpful.

Follow-on questions:

Mom had two IRA accounts (@ Franklin Templeton (FT) and @ Wells Fargo) and a life insurance policy, outside the trust, naming her three children as equal beneficiaries Thus far I am lacking contact information for the insurance company.

Regarding distribution of the IRA's, FT said all they need is: notification of death; a death certificate; and a FT request for distribution form with a signature guarantee from each beneficiary. When they have that, they will verify the beneficiary is legitimate and then distribute the appropriate portion of the account. They do not require paperwork from all beneficiaries prior to distribution. Seems pretty straight-forward.

Wells Fargo says that, in spite of having received death notification, they will not even acknowledge the existence of the IRA without the okay of the executrix. That strikes me as Wells Fargo being purposely, and unnecessarily, difficult. Then again, there may be a legitimate reason. Your thoughts?

Thank you.

 

[tranquility]

While the IRA (with beneficiaries) does not pass through the probate process, it is a part of a person's estate and could be used to calculate taxes. It is not unreasonable to get the administrator (executor) approval before distribution.

 

[n78949]

Good to know. Thanks

 

[anteater]

I have to disagree with Tranq on this one. Wells Fargo is jerking you around.

But they have the "gold," they get to make the rules.

 

[n78949]

anteater,

I'm inclined to agree re Wells Fargo. But, as you said, there is that golden rule.

Thanks