trust funds

[martin moon]

i would like to know about a trust fund that some friends of the family are having difficulty with. the couple with the problem are both in their lower 80's the just inherited approx $80,000 from a cousin that died. this money is in a trust that is according to them a 10 year fund that they can't touch. it is my belief that this couple will probably not live another 10 years. these people need the money. what recourse do these people have? i understand they probably have to pay penalities and taxes. also is it possible to move the money to a different bank that is closer to their home? the current bank is approx 4 hrs from them. the state in question is iowa.

 

[ALawyer]

Presumably there are others named who would get the money if the 80 year olds do not survive. Those "remaindermen" would not likley consent to a premature distribution, and without their consent, the money stays in the trust as that is what the deceased specified. As far as moving the money, get real. Banking is international now, and the location of the branch where the account is maintained is largely irrelevant.

 

[martin moon]

more on money in trust.

I appreciate your sarcasm. These people are the only living relatives. I found out that they tried to go to court and that a representative of the bank went to fight the early dispersal of funds. My thought was to move the money from that banks hands would help. I'm unsure how all this works which is why I'm not a lawyer. but one would assume that the bank is making money on interest which could be substantial with a sum of $80,000 in question.

 

[advisor10]

3-9-2002

Talk to a trust attorney to find out what other options might be available. At least you might be able to get a copy of the original trust documents that would explain how it is set up.

It seems like the bank is trying to hold on to this money without officially explaining to these beneficiaries what their rights are to claim at least a portion of the money, and it doesn't seem fair. For what possible reason would the decedent leave them this money and then restrict it to where they could not get access to it? Something doesn't seem right here.

SINCERELY,

advisor

 

[martin moon]

Thank you for your sincere advice. That's what I'm looking for. I appreciate it greatly.