Rights of Contigent Beneficiaries?

[a.f.earhart]

What is the name of your state? Kansas & Oklahoma

Several years ago, my parents established and funded a revocable trust in Kansas, with my father as trustee and my brother as trustee upon his incapacity or death. The trust also stipulated that he act as conservator in lieu of gaurdianship in event of their incapacity. They also created separate wills. The trust (and will) gives my mother a life estate in his share of the trust, with his children listed as heirs of any assets remaining after her death. He was later declared mentally incompetent with dementia, and passed away 18 months ago in a different state (Oklahoma). Mother, who also suffers from severe dementia, lives in Oklahoma with the brother who is the trustee and who controls and administers the trust. The other siblings and I have asked for, but not received, an accounting of her and the trust's assets (now all in mutual funds). As her children, or as contingent beneficiaries, do we actually have a legal right to such an accounting at this point in time? If so, how and where (in which state) would we go about enforcing that right?

 

[colourfastt]

What is the name of your state? Kansas & Oklahoma

Several years ago, my parents established and funded a revocable trust in Kansas, with my father as trustee and my brother as trustee upon his incapacity or death. The trust also stipulated that he act as conservator in lieu of gaurdianship in event of their incapacity. They also created separate wills. The trust (and will) gives my mother a life estate in his share of the trust, with his children listed as heirs of any assets remaining after her death. He was later declared mentally incompetent with dementia, and passed away 18 months ago in a different state (Oklahoma). Mother, who also suffers from severe dementia, lives in Oklahoma with the brother who is the trustee and who controls and administers the trust. The other siblings and I have asked for, but not received, an accounting of her and the trust's assets (now all in mutual funds). As her children, or as contingent beneficiaries, do we actually have a legal right to such an accounting at this point in time? If so, how and where (in which state) would we go about enforcing that right?

As a general rule, while your mother is alive you have NO right to an accounting because you're not the beneficiary.

 

[a.f.earhart]

Follow Up Question

Thanks for your reply. On a related subject, my sister, who lives in another state, has Medical POA for mother and would like to moniter her health care activities and expenses to ensure she is getting the best care. Is she entitled to have access to those records?

 

[Dandy Don]

Are the children listed as beneficiaries of the trust only, or the will only, or in both?

You need to be consulting with a Kansas or Oklahoma trust attorney about the validity of this trust. If it can be proven by your father's medical records that he had been diagnosed with dementia or suffering from the symptoms of it during the time he wrote the will and/or trust, you and the other beneficiaries could contest it as being invalid because a person with diminished mental capacity is considered to not have the legal faculties to be able tohave sufficient understanding when entering into agreements/sign documents.

Your attorney will need to look at whether the mutual funds were officially titled in the name of the trust or not, and whether your brother got power of attorney to control any other assets (bank accounts, etc.) that may not be in the trust. Your attorney can advise you of your rights as a beneficiary whether you can request an accounting or not.

DANDY DON IN OKLAHOMA ([email protected])

 

[a.f.earhart]

The children were listed in both the will and the trust. Trustee brother had/has POA, and legally transferred all assets to the trust. Aside from the question of father’s mental status at the time the trust was established, the will and the trust documents seem to be equitable and legal. The issues we have involve current administration; concern that mother is getting the best care, compounded by lack of accountability on trustee brother’s part to the rest of the family.

We will consult a trust attorney, but don't know where, or which state law prevails, Kansas, where the documents were drawn & signed, or Oklahoma, where father (and presumably mother) passed away.

 

[Dandy Don]

Get a Kansas trust attorney because that is where the documents were drawn up and it is that law that determines whether you are entitled to the accounting. But you may eventually need to also consult an Oklahoma attorney as well, since both states are involved.

 

[BlondiePB]

Thanks for your reply. On a related subject, my sister, who lives in another state, has Medical POA for mother and would like to moniter her health care activities and expenses to ensure she is getting the best care. Is she entitled to have access to those records?

The medical POA is NOT entitled to ANY financial records.

 

[a.f.earhart]

I appreciate all of your input....it helps to have realistic expectations. We will consult with a Kansas trust attorney for further clarification.

Thanks again.