Question Regarding Testamentary Trust

[fancgrl]

My name is Jessica and I am a current Arizona resident, living in Scottsdale. I turned 18 in January and was recently informed that a testamentary trust fund was set up for me by my great grandmother shortly before her death.

It's a sizable amount of cash that I'm in dire need of. I have a two-year old daughter and would like to focus on investing my money in a restaurant I'm currently planning.

I've searched online, relentlessly in an effort to find any information pertaining to testamentary trusts, and have hit brick walls each and every click.

My trust is set to release 1/3 of the amount to me when I turn twenty, and then again when I turn thirty and fourty. It was my great grandmother's wishes.

I guess, the reason I'm posting here is to ask if there are any possible ways I can get the trust released to me now, in full?

Thank you for your time,
Jessica
Scottsdale, Arizona

 

[Dandy Don]

Sorry, but the rules are strict--you can not get this money in advance.

In your case this is probably a good thing--do you know how high the failure rate is for restaurants? You will have to get the money from another source--persuading investors or take out a loan.

When you reach the age when you will be able to get this money, you'll be glad you couldn't get it earlier because it will have increased in value. Better for you to buy a house or invest in your retirement than throw it away on a restaurant.

 

[fancgrl]

It really is irrelevant whether or not you feel my venture could fail, as it is my money and I'd like to know if there's any possible way to get full control over it.

Can I challenge in court? Should I consult an attorney and look into filing for it? I really would like this amount, up front and all together, rather than split up every ten years.

 

[fancgrl]

... and just for reference, the trust was set up in Arizona and the trustee is someone who works for Bank One.

 

[BlondiePB]

I'd like to know if there's any possible way to get full control over it.

No.

Can I challenge in court? Should I consult an attorney and look into filing for it?

Sure you can, but you will be denied and poorer than you are now after expending attorney fees.

 

[fancgrl]

No.

Sure you can, but you will be denied and poorer than you are now after expending attorney fees.

How much exactly, in court and attorney fees? My trust is around a million and a half, and I'd do it in a heart beat if it only ate 10-20 K. Can anyone give me some concrete information? Thanks to all who've replied, and those who will

 

[BlondiePB]

How much exactly, in court and attorney fees? My trust is around a million and a half, and I'd do it in a heart beat if it only ate 10-20 K. Can anyone give me some concrete information? Thanks to all who've replied, and those who will

Your request will be DENIED by the court.

 

[fancgrl]

Your request will be DENIED by the court.

My mother was able, around 35, to pull out a huge chunk of her trust to pay off her house. How would it be difficult for me to challenge for the money, if she successfully did?

 

[Dandy Don]

We don't have all of the details here about what her trust says, but her advantage is that she was a legal adult. Your disadvantage is that you are still legally a minor.

If you have a copy of the trust and will also discuss this matter with your trustee, then if trustee approves it, you can visit the loan department of the bank where the trust is held and ask for a letter of credit or a loan to be advanced to you now, to be repaid in 2 years when you are legally able to get access to your money.

Congratulations on being a hard worker and business oriented thinker, and not just a trust fund baby sitting back waiting to live only on the interest!!
Hope your venture works out well--what type of food will this restaurant specialize in?

DANDY DON IN OKLAHOMA ([email protected])

 

[fancgrl]

We don't have all of the details here about what her trust says, but her advantage is that she was a legal adult. Your disadvantage is that you are still legally a minor.

If you have a copy of the trust and will also discuss this matter with your trustee, then if trustee approves it, you can visit the loan department of the bank where the trust is held and ask for a letter of credit or a loan to be advanced to you now, to be repaid in 2 years when you are legally able to get access to your money.

Congratulations on being a hard worker and business oriented thinker, and not just a trust fund baby sitting back waiting to live only on the interest!!
Hope your venture works out well--what type of food will this restaurant specialize in?

DANDY DON IN OKLAHOMA ([email protected])

I plan to open a sports grill in Tulsa, actually

All of my boyfriend's family lives there, and it's just a better enviroment than Scottsdale, AZ. I love Tulsa. I'm almost looked down upon because I have a child so young...

Almost everyone in Scottsdale lives off money left to them by someone else, and I just don't understand why. I want to invest, I want to build, have something more to leave to my daughter.

I've asked for a copy of the will and information on my trust so I'm prepared when I visit an attorney.

So, I have a better chance of gaining a line of credit rather than fighting for the full amount now?

 

[Dandy Don]

You are not familiar with trust law. The trustee must administer it exactly in accordance with the instructions of the trust, which is that you can not legally receive this money until you are a certain, exact age. If he were to give it to you he would be breaching his fiduciary responsiblity and subject to removal.

Since the bank is profiting from fees on this trust, they should be very sympathetic to giving you a loan or line of credit.

No family member would be willing to make a loan to you?

 

[fancgrl]

You are not familiar with trust law. The trustee must administer it exactly in accordance with the instructions of the trust, which is that you can not legally receive this money until you are a certain, exact age. If he were to give it to you he would be breaching his fiduciary responsiblity and subject to removal.

Since the bank is profiting from fees on this trust, they should be very sympathetic to giving you a loan or line of credit.

No family member would be willing to make a loan to you?

I wouldn't want to take a loan from family.

So, my best best is applying for a loan or line of credit?

 

[Dandy Don]

Either--the bank can explain your options. You will not be able to get the full amount you are due from the trust, you will only get the amount you request to use for funding the restaurant and you won't need more than $40,000 for that will you?

 

[fancgrl]

Either--the bank can explain your options. You will not be able to get the full amount you are due from the trust, you will only get the amount you request to use for funding the restaurant and you won't need more than $40,000 for that will you?

Yeah, I will.

It's going to cost me 40K a month, just to operate. I have the projected numbers. Roughly, I'd need 1/3 of my trust to run a year, counting the lease.

That's why I'm interested in attempting to get it all at once...

 

[Dandy Don]

You don't need millions of dollars at once to run a restaurant. And please do your market research carefully, because there are already lots of sports related bars and grills in Tulsa.