trust

[jwrclr]

What is the name of your state? Ks

Can a trustee take the money out of a trust to pay off his credit cards? Says he is using IRA for collateral.

 

[Dandy Don]

Using whose IRA for collateral?

Is the trustee also a beneficary of the trust?

Have you seen a copy of the trust to determine exactly what trustee is allowed to do?

How much has he taken to pay off the credit card debt?

Is the first time he has taken such monies?

Is the title of the IRA account titled in the name of the trust or is the trust a beneficiary of it?

It looks and sounds improper, but an attorney or accountant would have to look at the trust to see if it actually is improper and whether it is considered a breach of fiduciary duty. If he is entitled to take a certain amount as trustee fee compensation then this may be what he is thinking he is taking.

DANDY DON IN OKLAHOMA ([email protected])

 

[jwrclr]

The ira is in the name of the trustee only.

I do not know if he is listed as beneficiary.

He took all the money in the trust 100k.

This was to be used for the adult children of the person who started the trust.

When it came time to pay property taxes on the adult childrens homes trustee took money out of his account to cover the check he wrote.

 

[seniorjudge]

The ira is in the name of the trustee only.

I do not know if he is listed as beneficiary.

He took all the money in the trust 100k.

This was to be used for the adult children of the person who started the trust.

When it came time to pay property taxes on the adult childrens homes trustee took money out of his account to cover the check he wrote.

Sounds like something shady is going on but you will have provide us with facts and details.

Start with a timeline and be very explicit what the trust says; have a copy of the trust handy in case we have further questions.

 

[Dandy Don]

You need to consider hiring a trust attorney to have the trustee's actions audited--it seems as if he could be in breach of fiduciary duty, especially if it is true as you say that he "took the money out of the trust". He had no business doing that unless the trust specifically authorizes that. If he is guilty of misconduct he can be replaced by someone else.

You also need to be finding out from an attorney whether your state permits a trust beneficiary to request a copy of the trust and an accounting statement from the trustee.

DANDY DON IN OKLAHOMA ([email protected])