What is the name of your state (only U.S. law)? California
My brother is the Trustee, and I am a beneficiary of a family trust which became irrevocable when our mother passed away in 2009. Distributions from the trust have been my primary source of income since 2008.
The trust document says the Trustee “shall pay to or apply for the benefit of each child as much of the principal as the Trustee deems necessary for their respective reasonable health, education, support, maintenance, comfort, and general welfare, after taking into consideration, to the extent the Trustee deems advisable, any other income or resources of such child, known to the Trustee and reasonably available for these purposes”
When our mom passed away we fixed up her house to make it a rental property. I was paid hourly by the common trust for my work on the house. The Trustee withheld all my hourly pay for 8 months, which was ok because I was still getting monthly distributions from the trust. One day the Trustee decided to pay me for my hours of work at the house, a lump sum which exceeded the amount of my regular monthly distribution. He then deemed that lump sum “reasonably available” for my H.E.M.S. and so decided not to give me my regular monthly distribution that month stating that I must use my wages to pay my monthly bills.
My argument is that he is taking advantage of his dual-rolls as my Trustee, and as my Employer. If he had (as my employer) paid me every two weeks as required by law, there never would have been a lump sum payment to me that he (as my Trustee) could “hijack” away from me in such a way.
Can the Trustee do this? What is the definition of “reasonably available” in this sense?
Thank you
My brother is the Trustee, and I am a beneficiary of a family trust which became irrevocable when our mother passed away in 2009. Distributions from the trust have been my primary source of income since 2008.
The trust document says the Trustee “shall pay to or apply for the benefit of each child as much of the principal as the Trustee deems necessary for their respective reasonable health, education, support, maintenance, comfort, and general welfare, after taking into consideration, to the extent the Trustee deems advisable, any other income or resources of such child, known to the Trustee and reasonably available for these purposes”
When our mom passed away we fixed up her house to make it a rental property. I was paid hourly by the common trust for my work on the house. The Trustee withheld all my hourly pay for 8 months, which was ok because I was still getting monthly distributions from the trust. One day the Trustee decided to pay me for my hours of work at the house, a lump sum which exceeded the amount of my regular monthly distribution. He then deemed that lump sum “reasonably available” for my H.E.M.S. and so decided not to give me my regular monthly distribution that month stating that I must use my wages to pay my monthly bills.
My argument is that he is taking advantage of his dual-rolls as my Trustee, and as my Employer. If he had (as my employer) paid me every two weeks as required by law, there never would have been a lump sum payment to me that he (as my Trustee) could “hijack” away from me in such a way.
Can the Trustee do this? What is the definition of “reasonably available” in this sense?
Thank you