Trust Distribution Help

[mattgeorge96]

What is the name of your state (only U.S. law)? California

Ok so my grandfather left us some property. Myself(Matt), Brother(Mike), Sister(Sara) and Father(Joe) plus some other relatives. We signed an agreement of distribution to divide the assets and properties amongst the family. In the agreement of distribution it states that Myself, Mike, Sara and Joe are beneficiaries and recieve 1/4 interest in real property 14563 Dos Palmas ( A House) and 1/4 interest in real property of 3750-3754 Swift Ave(Apartment building).

Ok so we are all 1/4 interest in both properties.

After the agreement of distribution and everything has taken place in February of 2008 My Father- Joe took out a 2nd mortgage on the home (property at 14563 Dos Palmas) the house was paid off before this and the mortgage was taken out by my father without consent from any other of the 3/4 interest. I don't know why or where this money borrowed went. The approximate amount borrowed from the home was $150k. Well now Joe is attempting to leave myself and others responsible for this mortgage he took out and used I assumed for his own benefits. I do live in the home at 14563 and pay the bills and have been but this mortgage has made the payment unbearable and considering the home was paid of prior I don't feel it is fair for me to have to be stuck with a mortgage I had no idea about nor did I want or approve to take out.

What I want to know is was this legal for him to take outs this 2nd mortgage without full agreement and after taking it out shouldn't the funds received have been divided or something.

Also with our apartment there was also money borrowed from it in which I have no idea where it went close to $400k.

In addition Joe is controlling all income from the property and has yet to verify where everything is going whenever I ask he gets defensive and tells different stories that don't make sense. I want to do a full audit on him or something to bring everything into the open, how do I get some justice and receive what is rightfully mine as stated in the distribution.

 

[anteater]

Just to clarify for everybody...

The trust has been wound up, the properties distributed from the trust, and the 4 of you are now the owners? Owners directly, that is. Not as part of partnership, LLC, etc.

 

[curb1]

How are these properties titled? I can't believe a mortgage was pushed through without signatures from all owners.

 

[tecate]

My guess is a lender wouldn't take a 1\4 interest as security. Either he had the power to bind the entire parcel or there are some shenanigans going on.

 

[mattgeorge96]

???

distribution has already taken place, and under my assumption the deed was not recorded by my father(Joe) the trustee of my grandfathers trust and since it has not been recorded which should have been done by law, my father was able to take out the 2nd mortgage without us. I want to know legally how he could do that and if I am obligated to pay this mortgage as I didn't appoave or consent to it and it was taken out by my father without anyone knowing and the money borrowed was used for who knows.
THANK YOU

 

[seniorjudge]

You need to sue your father.

 

[mattgeorge96]

why sue him?

That doesn't help much....
I need some real feedback how to go about this?

THANKS

 

[tecate]

Let's assume he tells you to "stuff it, son. This is my father, so its my inheritance." If you and your relatives don't want to force him to pay you off, then he wins.

 

[mattgeorge96]

well that is just a stupid reply


LOL

come on we are stuck in a trust agreement not like he can just legally screw us over for what is already stated and legally ours...

the agreement of distribution of the trust is that my father, self, brother and sister are all 1/4 interest in the properties including the home and apartment building.

what I want to know is how and legally how my dad could take out a 2nd mortgage on the house in his name without our consent or knowing. And after he took it out how he could use it in his own benefit. And if he can leave the mortgage to me or us to pay.

What is up with that sounds illegal as **** sorry for the bad words....
he must have failed to file the deed after the distribution otherwise how could he take out this 2nd w/o the rest of the 3/4's parties consent????????????????????????????????????///


someone with real knowledge please help

 

[truthandhonor]

Ahoy, neighbor. Here in sunny California, we have a set of laws on the books called the CALIFORNIA PROBATE CODE which can be accessed via the following link:

http://www.leginfo.ca.gov/cgi-bin/calawquery?codesection=prob&codebody=&hits=20

While I am not a lawyer, just another victim learning as I tredge along a similar path, I recommend reading the sections of the code that pertain to benefiicary rights and duties of trustees. You will find that your instincts of your knowledge of the difference between right and wrong are valid and your rights provided for but your courage to take your power back, to not let the "family crook" of the hook, willbe tested as well as your endurance, your strength, and charachter. Stick with it. If you familiarize yourself with the laws, you will see that there are actions you can take and you will be better versed when you do consult an attorney.

CA Pro Code 1060-1064 Governs accountings. See also:

16003. If a trust has two or more beneficiaries, the trustee has a
duty to deal impartially with them and shall act impartially in
investing and managing the trust property, taking into account any
differing interests of the beneficiaries.


16004. (a) The trustee has a duty not to use or deal with trust
property for the trustee's own profit or for any other purpose
unconnected with the trust, nor to take part in any transaction in
which the trustee has an interest adverse to the beneficiary.

17200-17211 Internal affairs of a trust.

 

[mattgeorge96]

thanks

well that helps alot to see the actual probate law, but for me a lot of the terms used are confusing, LOL

I am seeing a lawyer on thursday so hopefully they can put things into common terms for me but I get the drift of what is going on so thanks

anyone else have any feedback please leave it here it all helps.

THANKS AGAIN
matt

 

[tecate]

Hey Senior Judge. Wouldn't you love to be the fly on the wall to see the expression on the face of our naive friend when his attorney tells him "for real" about the birds and the bees? And charges him for it! I think we would both be "laughing out loud."

This would be a good one for our friend who wants to do a documentary.

 

[Dandy Don]

Was this property inherited from your grandfather?

Was probate done for this property?

The agreement of distribution may or may not be legal. Whose idea was that? Let's hope it wasn't done to get out of doing probate, where everything would have been done legally and properly.

If Joe was the executor or trustee and did not perform his legal duty to ensure that the deed was recorded properly to reflect the names of the heirs, how is the lender supposed to know who the heirs are?

Tell Joe to hire a real estate or probate attorney to get the deed recorded properly so he can bear the expense of that and if he won't do it, hire one yourself to get it done.

And start looking for a new place to live because if you can't afford to assume the mortgage, the lender is going to start foreclosure proceedings if Joe doesn't step up to the plate and assume responsibility. Wow--what a way to treat your family!

 

[Texas Pooh]

come on we are stuck in a trust agreement not like he can just legally screw us over for what is already stated and legally ours...

Matt,

Of course your father can not legally change the terms of the trust, or fail to follow the trust. However, there are no "trust police" who will come hold your father responsible. The only way that he will be held responsible, or that you can return things to the way they should be, is for you to sue your father. The court will then hold your father responsible, and order your father to do the things that need to be done (change deeds, return money, etc.)

Exactly the advise you were given.

The advice that you thought was stupid.

There are no other options. I'm sure the lawyer that you will pay will give you the same advice, but be sure and let us know if he gives you some other insights.

Tecate, can I laugh with you?

 

[mattgeorge96]

THANKS

i meet with the lawyer next week
if I have to sue so be it, I will

I don't feel I should have to pay nor should my brother and sister have to pay for a mortgage my father took out on his own will and without our knowledge or consent as we are all supposed to be 1/4 owners as stated in the notarized and signed agreement of distribution of the trust.

He didn't pull out the mortgage until long after the distribution(Feb 08) and before that the house was paid off.