Special Needs Trust strategy in Texas

[milkmandan]

Texas
Let me just set the scene quickly.

The trustee uses the funds for a beneficiary request occasionally, but for the most part turns down requests, on two occassions immediately and without consideration, including mobility devices, trips/experiences, etc. A few requests are met with OK but here's all these conditions that make it impossible. The beneficiary would like to get to no contact with trustee, and this is 99% the case now, but is forced to reach out for turndowns and occasional OKs.

Beneficiary has asked trust for ballpark account balance to determine what was possible to ask for and was rejected for years (eventually was told, but who knows if it's true). Beneficiary asks for copy of trust or to review and rejected. Beneficiary did not set this up, it wasn't explained to them, just here sign this, and is worried there's a poison pill in it. There's a energy company and huge assets in the trustee's and beneficiary's family, and 30 years ago trustee tried to get her grandma to cut the trustee's own mother out the grandma's will.

Are any of these breaches of fiduciary responsibility? (Seems like breach of care and possibly loyalty) And if so, assuming that the trustee would fight it at every possibilty, would it be easier to blow the whole thing up or just change trustees? Would either avenue be a big expensive proposition with depositions and drawnout? Would an attorney just petition a probate judge to look at it or what? Trying to do this cheaply thru my own time and research and my lawyer buddy.

I'm sorry. 2 things I forgot: I've read what can be paid for with this trust, and the turndowns were for legitamite things.

and 2. only a third of these turndowns I have documented, so hopefully it wouldn't be he said she said.

I've tried to be honest with this to get honest responses. Any help would be appreciated.

 

[Just Blue]

Texas
Let me just set the scene quickly.

The trustee uses the funds for a beneficiary request occasionally, but for the most part turns down requests, on two occassions immediately and without consideration, including mobility devices, trips/experiences, etc. A few requests are met with OK but here's all these conditions that make it impossible. The beneficiary would like to get to no contact with trustee, and this is 99% the case now, but is forced to reach out for turndowns and occasional OKs.

Beneficiary has asked trust for ballpark account balance to determine what was possible to ask for and was rejected for years (eventually was told, but who knows if it's true). Beneficiary asks for copy of trust or to review and rejected. Beneficiary did not set this up, it wasn't explained to them, just here sign this, and is worried there's a poison pill in it. There's a energy company and huge assets in the trustee's and beneficiary's family, and 30 years ago trustee tried to get her grandma to cut the trustee's own mother out the grandma's will.

Are any of these breaches of fiduciary responsibility? (Seems like breach of care and possibly loyalty) And if so, assuming that the trustee would fight it at every possibilty, would it be easier to blow the whole thing up or just change trustees? Would either avenue be a big expensive proposition with depositions and drawnout? Would an attorney just petition a probate judge to look at it or what? Trying to do this cheaply thru my own time and research and my lawyer buddy.

Who are you in this situation?

 

[Just Blue]

Texas
Let me just set the scene quickly.

The trustee uses the funds for a beneficiary request occasionally, but for the most part turns down requests, on two occassions immediately and without consideration, including mobility devices, trips/experiences, etc. A few requests are met with OK but here's all these conditions that make it impossible. The beneficiary would like to get to no contact with trustee, and this is 99% the case now, but is forced to reach out for turndowns and occasional OKs.

Beneficiary has asked trust for ballpark account balance to determine what was possible to ask for and was rejected for years (eventually was told, but who knows if it's true). Beneficiary asks for copy of trust or to review and rejected. Beneficiary did not set this up, it wasn't explained to them, just here sign this, and is worried there's a poison pill in it. There's a energy company and huge assets in the trustee's and beneficiary's family, and 30 years ago trustee tried to get her grandma to cut the trustee's own mother out the grandma's will.

Are any of these breaches of fiduciary responsibility? (Seems like breach of care and possibly loyalty) And if so, assuming that the trustee would fight it at every possibilty, would it be easier to blow the whole thing up or just change trustees? Would either avenue be a big expensive proposition with depositions and drawnout? Would an attorney just petition a probate judge to look at it or what? Trying to do this cheaply thru my own time and research and my lawyer buddy.

I'm sorry. 2 things I forgot: I've read what can be paid for with this trust, and the turndowns were for legitamite things.

and 2. only a third of these turndowns I have documented, so hopefully it wouldn't be he said she said.

I've tried to be honest with this to get honest responses. Any help would be appreciated.

Honestly...Who are you in this situation?

 

[milkmandan]

Thanks for the response. I'm the beneficiary.

And just to be clear, I don't have access to any of the record keeping, but I'd guess if there's a bit over 25k in this trust, only 1k of it has been used for my needs in 5 years of this being up and running. And I have many needs and voids that could be filled with use of this money (habitat adjustments for comfort/ease, mobility devices, etc). I have asked for reasonably priced and legitamite things. I'm a reasonable person. Not looking to use all this money at once. Want this to be invested appropriately so it can grow (did it grow these past few years during bull market?), and I can protect it and draw off it for the next 30 years.

Bottom line, parents are divorced, one is trustee, I live with the other, and thist trust is being used to relitigate divorce. And I'm suffering because of it. Aside from this trust, this behavior has been happening since divorce 15+ years ago.

I would think I could prove to a judge that I'm mentally capable to manage this myself. And because no pre-existing conditions I can and I'd like to get off govn assistance.

 

[latigo]

Thanks for the response. I'm the beneficiary.

And just to be clear, I don't have access to any of the record keeping, but I'd guess if there's a bit over 25k in this trust, only 1k of it has been used for my needs in 5 years of this being up and running. And I have many needs and voids that could be filled with use of this money (habitat adjustments for comfort/ease, mobility devices, etc). I have asked for reasonably priced and legitamite things. I'm a reasonable person. Not looking to use all this money at once. Want this to be invested appropriately so it can grow (did it grow these past few years during bull market?), and I can protect it and draw off it for the next 30 years.

Bottom line, parents are divorced, one is trustee, I live with the other, and thist trust is being used to relitigate divorce. And I'm suffering because of it. Aside from this trust, this behavior has been happening since divorce 15+ years ago.

I would think I could prove to a judge that I'm mentally capable to manage this myself. And because no pre-existing conditions I can and I'd like to get off govn assistance.

Sorry, but you are not going to find what help you may need cruising the Internet; even if your rambling made sense you won't find it. Take the matter up with your attorney that can examine the trust instrument and history of the trustee's management.

Just don't persist with the unheard of notion that the trustee is using the trust corpus to "relitigate" a divorce that has been closed for more than a decade and a half! Such irrational utterances taint your entire argument.

 

[milkmandan]

even if your rambling made sense you won't find it.

Just don't persist with the unheard of notion that the trustee is using the trust corpus to "relitigate" a divorce that has been closed for more than a decade and a half! Such irrational utterances taint your entire argument.

Thanks for that. Nice and helpful! Kicking a gimp while he's down. #Toughguy

 

[Just Blue]

Thanks for that. Nice and helpful! Kicking a gimp while he's down. #Toughguy

If you don't like the attorney opinion based on your posts, feel free to hire an attorney in your area to assist you.

 

[tranquility]

Thanks for that. Nice and helpful! Kicking a gimp while he's down. #Toughguy

Even though latigo can come up with Southern Charm when he needs to, much of the time he gives blunt legal answers based on reality.

I looked at the question and did not answer as there are many factors involved and a quick summary will not enlighten. But, one thing that came to my mind is the OP is FAR from anything resembling a problem. Let alone a problem he can resolve on his own.

He needs an attorney.

latigo gave that answer in a way that was abusive enough the OP will give up or get an attorney. I cannot disparage that choice of motivation. This is hard and subtle law. If a beneficiary of a special needs trust thinks he is being denied, there really is no answer beyond get an attorney. As, even attorneys know there is a lot of work and effort and knowledge involved to even know if there is a problem that can be litigated. (Let alone productively.)

 

[Just Blue]

Even though latigo can come up with Southern Charm when he needs to, much of the time he gives blunt legal answers based on reality.

I looked at the question and did not answer as there are many factors involved and a quick summary will not enlighten. But, one thing that came to my mind is the OP is FAR from anything resembling a problem. Let alone a problem he can resolve on his own.

He needs an attorney.

latigo gave that answer in a way that was abusive enough the OP will give up or get an attorney. I cannot disparage that choice of motivation. This is hard and subtle law. If a beneficiary of a special needs trust thinks he is being denied, there really is no answer beyond get an attorney. As, even attorneys know there is a lot of work and effort and knowledge involved to even know if there is a problem that can be litigated. (Let alone productively.)

Well stated!!

 

[milkmandan]

Even though latigo can come up with Southern Charm when he needs to, much of the time he gives blunt legal answers based on reality.

I looked at the question and did not answer as there are many factors involved and a quick summary will not enlighten. But, one thing that came to my mind is the OP is FAR from anything resembling a problem. Let alone a problem he can resolve on his own.

He needs an attorney.

latigo gave that answer in a way that was abusive enough the OP will give up or get an attorney. I cannot disparage that choice of motivation. This is hard and subtle law. If a beneficiary of a special needs trust thinks he is being denied, there really is no answer beyond get an attorney. As, even attorneys know there is a lot of work and effort and knowledge involved to even know if there is a problem that can be litigated. (Let alone productively.)

Point taken.

As was mentioned, I don't have a bunch of money to just go out and find a Elder Law attorney at $200/hour to explain this and get feedback, but I do have an attorney buddy that, if I did the casework and research, would litigate this affordably. I read some other special needs trust threads on here, and there were 1 sentence responses with 'Trustee violated fiduciary responsibilities' and the like, and I guess stupidly this was what I was looking for. I guess my situation is too complicated for something along the lines of 'yeah, it's reasonable for fiduciary duty to require trustee to use ANY of the money for beneficiary'. Thanks to those that helped. Not even back to square 1, still at it!

 

[tranquility]

At the very least, after review of the facts, attorney buddy should be able to point out the issues. Maybe then we can help with some research.