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mismanaged trust

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qqq

Junior Member
What is the name of your state? California

I am currently a beneficiary of a trust. The trustees have made distributions to someone who isn't a beneficiary. Is that legal? No notification was given to myself or other beneficaries of this action. This has been going on for about 3 years. The amount distributed to this person is sizeable. When these payments came to the attention of myself and other beneficiaries, the trustees discontinued making the payments. I want to know if the actions of the trustees have set some sort of precidence that would allow the payee to take action against the trust. The trust documents clearly state that only "blood" relatives are to inherit, and nowhere in the will or trust documents is this person named.
 


Dandy Don

Senior Member
If you are certain that the person who received these payments did not receive them for legal services or for some other professional reason, then you are correct to ascertain that this is most improper.

This is a breach of fiduciary duty on the part of the trustee and cause for removal. The beneficiaries need to hire a trust attorney to get this trustee removed, and they also need to find out if a trustees bond has been posted for this trust and to request one if one has not been posted.

DANDY DON IN OKLAHOMA ([email protected])
 

qqq

Junior Member
The payee was not an employee.

She was not an employee, she is the ex-wife of my brother. She is a very manipulative person, and occasionally threatens to deny visitation rights to my parents. My two nephews are a constant barganing chip for her. I asked my parents, who are also the trustees, if this was a way of assuring that she stay around. They denied this. The fact is, she hasn't had a job in 10 years. My brother pays child support, and the ex constantly taps our parents for money. My brother is currently having his ex investigated for child abuse after hearing from friends about some bruises they noticed. I've got to say I never thought this could happen to my family. This one nasty person has the entire family fighting.
 

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