Firing attorney

[RINKER]

What is the name of your state? MN

Is it possible to fire my attorney in the middle of finalizing a settlement in a trust case? A First Accounting was provided to the court by the trustee. The court has requested a Second and Final Accounting and is allowing $1,000 to be used to wrap-up what is left to do to terminate the trust.

The trustee's attorney notified my attorney that there are now, after the settlement was signed by all beneficiaries and the judge, expenses totalling $4000 that will be needed to: reimburse the trustee's witness; and pay a $2000 retainer fee for the accountant to prepare the Second Accounting and pay estate taxes, (I had thought the estate taxes were paid before I agreed to the settlement. Also, what accountant requires a $2000 retainer to complete a tax form? He was the accountant for the trust, and he prepared the Estate Tax Return!!)

In addition, the trustee's attorney did not include in the settlement the trustee's portion of the court recorder's fee. That will need to be paid. My attorney, however, did include my portion in the settlement, so my portion has been paid.

Now my attorney is asking me if I will approve of these extra expenses being paid out of trust money (the trustee is, now, no longer allowed to write checks using what is left in the trust without approval of the court).

My attorney insisted on me settling and now he wants me to approve these additional expenses that I will be paying 70% of, per the settlement. I don't even know if I will be notified of the Second Accounting hearing so that I can defend my position on these expenses and hopefully get the chance to prove the trustee's lack of due diligence. If I maintain the attorney that I have had for 3 years, (who I thought was defending me, and looking out for my best interest) he is going to want me to agree, but I refuse to and I will not be pressured again into agreeing to something that already has established parameters set by the court. Any suggestions Dandy Don and others?

 

[BlondiePB]

Is it possible to fire my attorney in the middle of finalizing a settlement in a trust case? A First Accounting was provided to the court by the trustee. The court has requested a Second and Final Accounting and is allowing $1,000 to be used to wrap-up what is left to do to terminate the trust.

The trustee's attorney notified my attorney that there are now, after the settlement was signed by all beneficiaries and the judge, expenses totalling $4000 that will be needed to: reimburse the trustee's witness; and pay a $2000 retainer fee for the accountant to prepare the Second Accounting and pay estate taxes, (I had thought the estate taxes were paid before I agreed to the settlement. Also, what accountant requires a $2000 retainer to complete a tax form? He was the accountant for the trust, and he prepared the Estate Tax Return!!)

1. Is this a final tax return from Jan. 1, 2006 to date?

2. You stated that $2,000.00 for the accountant was for both the taxes and for the accountant to prepare another accounting.

In addition, the trustee's attorney did not include in the settlement the trustee's portion of the court recorder's fee. That will need to be paid. My attorney, however, did include my portion in the settlement, so my portion has been paid.

Why isn't the recorder's/auditor's fee being paid for by the trust?

Now my attorney is asking me if I will approve of these extra expenses being paid out of trust money (the trustee is, now, no longer allowed to write checks using what is left in the trust without approval of the court).

Good. Remember, every time that a check needs to be written, it will cost the trust for the court approval & attorney fees to do so.

My attorney insisted on me settling and now he wants me to approve these additional expenses that I will be paying 70% of, per the settlement. I don't even know if I will be notified of the Second Accounting hearing so that I can defend my position on these expenses and hopefully get the chance to prove the trustee's lack of due diligence. If I maintain the attorney that I have had for 3 years, (who I thought was defending me, and looking out for my best interest) he is going to want me to agree, but I refuse to and I will not be pressured again into agreeing to something that already has established parameters set by the court. Any suggestions Dandy Don and others?

You are so close to getting this finally settled. Please consider how much more it will cost to fire your current attorney and to continue fighting all this. It will cost more than what you have just posted about, RINKER.

 

[RINKER]

Firing an Attorney

BlondieBP, that is exactly my dilemma.

Here is an exact quote from the trustee to his attorney pertaining to the expenses to be paid:

"The accountant will prepare:

1 personal return for 2003 for dad
3 Trust/Estate Returns for 2003, 2004, 2005 and a closing one when we
pay out all the money and end the trust."

Now, my father passed away April 2003. Shouldn't he be held personally liable for lack of due diligence at this point? I did not cash the check for money that he inappropriately distributed to everyone to liquidate the trust. Therefore, he used the check that he sent me ($170K) for all expenses since June 2004. If I had cashed the checks and invested them as the others did, then I could not have tried to re-establish my father's trust.

I want to sue him personally for the damages he has caused. He also has paid himself very well as a trustee and personnal rep ($50K). I know he is allowed a fee, but for what? If I had removed 'my' $170K what would he have used to pay for all the expenses he incurred and used trust funds for from June 2004 to now? (Sorry, these are the questions I have no answers for and were never brought to the court's attention). Will I be notified of the date for approval of the Second Accounting?

 

[RINKER]

Firing Attorney

BlondieBP, Thank you for the information about the court costs every time a check is submitted for approval.

The trustee's objective is to deplete what is left in the trust because he is getting 8% of the remaining balance and the grandchildren will each get 5.5%and I am supposed to get 70% (my father's attorney who was deposed had notes stating that I should receive the "lion's share because I stayed by him more than the boys ever did").

The trustee never did want his own children to receive any of his inheritance, since he lost custody of them (my neice and nephew) because he mentally and physically abused them. (I was given a copy of the the custody case, since it is public record. It is horrific!) My attorney knows all of this and he is still handing him everything. Couldn't he write a letter to the judge supporting my decision based on the history of this case? After 3 years and he hasn't submitted tax returns? Isn't that a red flag?

 

[BlondiePB]

Here is an exact quote from the trustee to his attorney pertaining to the expenses to be paid:

"The accountant will prepare:

1 personal return for 2003 for dad
3 Trust/Estate Returns for 2003, 2004, 2005 and a closing one when we
pay out all the money and end the trust."

If $2,000.00 is all it's going to cost for all this, go for it. I found that a CPA charged $375.00 to do the EZ form in 2002 and didn't even ask the elders if they had any out-of-pocket medical expenses and a lot of other things that could be itemized that would have resulted in a refund rather than owing the IRS. Furthermore, these accounting reports aren't a piece of cake. Even ones done by CPA's do get rejected (but not mine ).

Now, my father passed away April 2003. Shouldn't he be held personally liable for lack of due diligence at this point? I did not cash the check for money that he inappropriately distributed to everyone to liquidate the trust. Therefore, he used the check that he sent me ($170K) for all expenses since June 2004. If I had cashed the checks and invested them as the others did, then I could not have tried to re-establish my father's trust.

He should have been removed for lack of due diligence.

I want to sue him personally for the damages he has caused. He also has paid himself very well as a trustee and personnal rep ($50K). I know he is allowed a fee, but for what? If I had removed 'my' $170K what would he have used to pay for all the expenses he incurred and used trust funds for from June 2004 to now? (Sorry, these are the questions I have no answers for and were never brought to the court's attention).

RINKER, sometimes questions never get answered. When they don't, you have to learn how to live without the answers rather than beat yourself up over it. A civil lawsuit will prolong all this and will halt the settlement. Now, if the trustee embezzled, that's criminal and can open up a whole different can of worms.

Will I be notified of the date for approval of the Second Accounting?

The court auditor will send the approval/rejection to the trustee's attorney who will send a copy to the trustee (cha-ching). If the trustee's attorney does not send a copy to your attorney, your attorney must request it from the trustee's attorney (cha-ching, cha-ching). Are you getting how all the money is being spent on attorneys?

 

[BlondiePB]

Thank you for the information about the court costs every time a check is submitted for approval.

You're welcome. It's the attorney fees that will cost a lot more.

The trustee's objective is to deplete what is left in the trust because he is getting 8% of the remaining balance and the grandchildren will each get 5.5%and I am supposed to get 70% (my father's attorney who was deposed had notes stating that I should receive the "lion's share because I stayed by him more than the boys ever did").

It's amazing how parents can take care of so many children, but all the children won't take care of a parent.

The trustee never did want his own children to receive any of his inheritance, since he lost custody of them (my neice and nephew) because he mentally and physically abused them. (I was given a copy of the the custody case, since it is public record. It is horrific!) My attorney knows all of this and he is still handing him everything. Couldn't he write a letter to the judge supporting my decision based on the history of this case?

That case, as horrific as it is, has to be kept separate.

After 3 years and he hasn't submitted tax returns? Isn't that a red flag?

There's a lot of red flags here with this case. I don't remember if this was a testamentary trust (I say no) or one established prior to your dad's death which did not have to be recorded to the court.

 

[RINKER]

Firing Attorney

BlondieBP, You are so right about attorney's fees (triple the cha-ching!). The trust was established by my father years ago, which is why I know how strongly my father felt about it being handled correctly.

My father had everything in place. As the years past, he was concerned about my other 'inept' brother and my father provided for him to the day my brother died. I promised him I would make sure my brother was always taken care of. As old fashion as my father was, the eldest son was to get the trustee position and take care of all the younger siblings and generations beyond, as he had provided for in the trust. The house went to the only girl, myself. That was an unbelievable struggle. If it wasn't for the deposition of my father's attorney who wrote the trust I would never have had a blade of grass from the house.

You are also right in finding a way to deal with my feelings, but how many people do you tell that to?? (Not just you). This is why in this country trustees are getting everything they can possibly get their hands on before the beneficiaries see an accounting.

Do you know how I can get this information out to the baby boomer generation and possiblly save the heartache and in some situations the breakdown of the family, so that parents will reconsider who they put in charge of their lifetime of hard earned money left in the hands of the right person. Attorney's are going to be billionaires by the time this generation has past. Do you know who I can contact to get on Dateline, or 60 Minutes, or even Oprah and other similar shows? What can I do to help others re-consider their decisions?

Thank you so much for your responses. You are helping to settle (at least to a simmer) some of the issues I have been constantly struggling with and losing sleep over.

 

[pojo2]

what accountant requires a $2000 retainer to complete a tax form? He was the accountant for the trust, and he prepared the Estate Tax Return!!)

Depending on the tax return and Estate Tax Return 2000.00 is a bargain. It is far from sitting down and doing a 1040A federal tax return, and can be many many pages long.

Seems in reading through SOME of the posts there is a lot more to this story than we know.

 

[BlondiePB]

You are so right about attorney's fees (triple the cha-ching!). The trust was established by my father years ago, which is why I know how strongly my father felt about it being handled correctly.

Therefore, this was not a testamentary trust under the watch of the court - as correctly predicted.

My father had everything in place. As the years past, he was concerned about my other 'inept' brother and my father provided for him to the day my brother died. I promised him I would make sure my brother was always taken care of. As old fashion as my father was, the eldest son was to get the trustee position and take care of all the younger siblings and generations beyond, as he had provided for in the trust. The house went to the only girl, myself. That was an unbelievable struggle. If it wasn't for the deposition of my father's attorney who wrote the trust I would never have had a blade of grass from the house.

Some parents do tend to believe that the eldest should be in charge of this stuff rather than the child who is most responsible.

You are also right in finding a way to deal with my feelings, but how many people do you tell that to?? (Not just you).

You'd be surprised.

This is why in this country trustees are getting everything they can possibly get their hands on before the beneficiaries see an accounting.

Being a trustee is much different than knowing the duties and obligations of a trustee.

Do you know how I can get this information out to the baby boomer generation and possiblly save the heartache and in some situations the breakdown of the family, so that parents will reconsider who they put in charge of their lifetime of hard earned money left in the hands of the right person. Attorney's are going to be billionaires by the time this generation has past. Do you know who I can contact to get on Dateline, or 60 Minutes, or even Oprah and other similar shows? What can I do to help others re-consider their decisions?

Unfortunately, it is the settlor's and testator's choice to nominate who is the trustee and/or personal representative. What settlor's don't understand is whether or not to have the trust recorded in the courthouse with the trustee having to provide an annual accounting to the court and the beneficiaries. The best place for you to start is in your own backyard.

Thank you so much for your responses. You are helping to settle (at least to a simmer) some of the issues I have been constantly struggling with and losing sleep over.

You are very welcome.

 

[RINKER]

Firing an attorney

what accountant requires a $2000 retainer to complete a tax form? He was the accountant for the trust, and he prepared the Estate Tax Return!!)

Depending on the tax return and Estate Tax Return 2000.00 is a bargain. It is far from sitting down and doing a 1040A federal tax return, and can be many many pages long.

Seems in reading through SOME of the posts there is a lot more to this story than we know.

It is much too convoluted at this point. I decided all 4 siblings should pay 1/4 of the retainer fee out of pocket, not the trust. My father passed away 3 years ago, and I signed a settlement assuming all expenses that needed to be paid were paid. I am not going to assume 81% of the cost of the retainer, per the breakdown in the settlement agreement (my 2 girls should receive 5.5% each and I should receive 70% of what ever is left in the trust). Because of my ignorance in swindling and extortion, I have been and have had to give the benefit of the doubt to the trustee. Now look where that has gotten me.

 

[RINKER]

You are again correct. Being a trustee means you have the skill to swindle, steal, lie, and mock the court system, and get away with it, without ANY PENALTY!!! I don't get it!