Trust and Trustee

[shellieb]

What is the name of your state (only U.S. law)? SC
My grandmother passed away a few weeks ago, she had a trust set up with my cousin as the trustee....he is an attorney and also had her power of attorney. Grandmother's house was in her 4 son's names but in 2003 my cousin got a line of equity and the house was deeded in his name as trustee. Long story short a $70,000 line of equity was taken out my grandmother at most spent $20,000 of the money. When my parent's went to the reading of the will my cousin showed no account of where the money went, he had drawn up a contract to sell the home to my uncle. My father refused to sign and well all heck has broken lose. My father simply wants accounting records, checks, withdrawals and anything else pertaining to the money. My cousin has requested an emergency court hearing to get approval to sell the home to my uncle. Does my father have any rights? My father only thought he was signing for a reverse mortgage not to put the house in the trust. My father only has an eight grade education and he has short term and long term memory loss. My grandmother lived very frugal and I know that she did not spend all of this money. I would appreciate any advice.
God Bless,
ShellieBWhat is the name of your state (only U.S. law)?

 

[TrustUser]

i am assuming that your father is one of the 4 sons, and therefore a beneficiary of the trust ?

perhaps someone with court knowledge will answer, but i think it is highly likely that a judge would require a trustee to show accounting of monies spent.

you would need to read your trust document, but trustee accounting is extremely typical. usually, the trustee needs to give an annual accounting. and also usually needs to be "available" regarding a request from a beneficiary to see the accounting.

it does not seem like a good idea to me for your father to be intimidated and sign something that he does not understand or agree to.

 

[Dandy Don]

Talk to a family law atorney to find out if your state has laws regarding abuse of POA. POA normally is supposed to provide some type of accounting with receipts, to prove he spent the money on the person's care and did not selfishly keep or steal it for himself, and if he won't provide an accounting there may be charges you could file against him. Also, having the home deeded to him as trustee is legally improper--it should have been deeded solely in the name of the trust. But if your father is a beneficiary in the trust he needs to let him go ahead and sell the home so your father can share in the proceeds.

 

[TrustUser]

actually, deeding it to the trustee is the correct way of doing things.

it should read something like john smith, trustee of the abc trust.

nothing at all wrong with that.

in a trust, the trustee is the legal owner. the beneficiaries are the beneficial owner. it is the beneficiaries who get the total benefit from the asset. and the trust document defines the relationship and control between the trustee and the beneficiary.