Trust disbursement

[cammiegray]

Michigan.
My aunt became trustee of my grandfather's trust upon my father's death in April 2001. The trust has both working farm property and investments. My brothers (2) and I do not really want to be farmers, so my aunt offered to purchase our ownership at a price that is approximately 35% below the appraised value (it was appraised about a month after grandpa's death). She also wants to distribute the investments (stocks and bonds) as they are and refuses to liquidate them so that we can just cash out.

This doesn't seem right to me. Can she do this? Or do we have to settle for what she wants to do?

 

[curb1]

It should be very easy to find out the value of the stocks and bonds on the day of distribution. It also will be easy to liduidate the stocks and bonds after they are distributed. Set up an account with a discount broker, put the stocks and bonds into account and then liquidate. If the stocks and bonds are in an account now they should be liquidated within that account unless it is a full service broker. There is a huge difference in commissions between a discount broker (E*TRADE,etc.) and a full service broker (Merrill Lynch, etc.). Could be thousands of dollars depending on what is involved.

 

[cammiegray]

thanks for your suggestion. what about the lowball offer to purchase the property? it doesn't seem fair or right to me.

 

[curb1]

Property should be sold at the market value or the appraised value. If Aunt does not want to buy at appraised value, it should be sold on the market to anyone willing to buy.

 

[cammiegray]

Thanks for the response. My aunt says that she has no interest in selling and says we can't force her to. She will buy our 50% ownership only at the discounted price or we "have to be her partner." What do you recommend we do next?