Trustee divulging private medical info to other heirs.....

[brashears]

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

I am the one of 5 beneficiaries of a trust and am considering requesting my portion of the estate due to terminal illness. I would like to purchase a home and pay off outstanding medical bills. I am an extremely private person and the trustee is requesting sensitive medical documentation - which I have no qualms providing - HOWEVER, I've requested that my medical info be kept CONFIDENTIAL. She indicates that it is her RIGHT to inform the other heirs of my illness, as me requesting early distribution of the estate directly affects them. The other heirs know that I am ill, but they do not know the extent or severity of my illness. Furthermore, I feel that it is NONE OF THEIR BUSINESS, as they are not the ones making the decision for distribution.

How can I ensure that my confidential medical information is not released beyond the trustee? The trust runs for 25 years... 15 has past and I have NEVER asked for anything. Pls advise... Thanks in advance!

 

[justalayman]

Furthermore, I feel that it is NONE OF THEIR BUSINESS, as they are not the ones making the decision for distribution.

right, the trustee does but the trustee is responsible, nay, liable to the other beneficiaries for improper actions. Depending on what the trust requires of him, he may be all but forced to divulge the info simply to avoid being sued.

So, to start, I presume there is some mechanism within the rules of the trust that would allow such a distribution. Does it define what qualifies to invoke that rule?

 

[brashears]

right, the trustee does but the trustee is responsible, nay, liable to the other beneficiaries for improper actions. Depending on what the trust requires of him, he may be all but forced to divulge the info simply to avoid being sued.

So, to start, I presume there is some mechanism within the rules of the trust that would allow such a distribution. Does it define what qualifies to invoke that rule?

The trust says "(a) The corpus of the trust will be divided between the beneficiaries. Both the corpus and the net income from the corpus shall be used for the support and maintenance of the beneficiaries as the trustee or the successor trustee shall, in his/her sole judgement determine. ((((None of us has received a single cent in 15 years))))

(b) It is understood that the trust shall in his/her determination make decisions with respect to disbursement of monies to the individual beneficiaries from their respective share with respect specifically to, but not limited to, educational needs, housing needs, investment opportunities that each beneficiary may require.

(c) The Trustee named herein shall have the authority to withdraw from the trust up to $500 per month as and for reasonable services rendered in administering the Trust responsibilities required herein.

 

[justalayman]

so you have a few choices:

the simple choices:

refuse the information upon which you will likely be denied

provide the information with the presumption it will be disclosed to the others

the tougher choices:

seek to replace the trustee

attempt to sue the trustee to require him to distribute your share to you


Neither is simple nor easy and most likely, not a winner.

given the trustee is able to use his own discretion, there is really no means to force him to distribute any assets of the trust but a threat may get him to agree to your terms. If he does, you need to get the non-disclosure agreement in writing, including a penalty should he disclose information to others without your permission.

other than that you might try removing him as trustee. Whether there is any chance of doing so will be based on info not known here. You say he has distributed nothing from the trust. Maybe some of the others are a bit upset about that as well.

I do wonder why you have no qualms providing the requested information to the trustee yet you feel the need to keep it private from co-beneficiaries of the trust. One would think you have some relationship with the other beneficiaries where trustees can be a complete stranger.

or one other possibility:

you actually address the other beneficiaries and talk to them about it. Maybe they would be willing to agree to the distribution without having as full of a disclosure as the trustee demands. After all, you said they are aware you are ill. Maybe they have no desire to know anymore than that.




I realized I referred to the trustee as a he. Replace all the affected pronouns as you read it. It's easier that way.

 

[Zigner]

The trustee may be entitled to use trust funds to fight the attempt at removal.

 

[brashears]

Thank you so much for taking the time to respond to my inquiries!

The other beneficiaries are half-siblings. We did not grow up together, nor were we ever close. While they know that I have terminal cancer through family hearsay, I've never confirmed, nor denied, as I've never felt the need to "clean up" anything. I've always been an extremely private person.... I'd like to keep my business (and money) private. I will provide the trustee the info only as it relates to my stake in the estate. No one else... I don't care about anyone else's portion.


I have terminal cancer and am trying to settle all of my affairs prior to becoming unable to do so. BTW, I am young (early 40s) and have minor children. I'd like to have my portion of that estate benefit them immediately, should I die soon.

 

[brashears]

The trustee may be entitled to use trust funds to fight the attempt at removal.

She made it clear back in 2003 that she will use the trust funds to FIGHT all requests. I'm not going back and forth with her. She pretty much said yes to my request... my issue is the confidentiality of my medical information. It's not the business of the other beneficiaries (1/2 siblings / estranged). The fact that I am requesting my portion of the estate may be their business - I'm ok with that. My detailed medical info, diagnosis, treatment details - No.

 

[Dandy Don]

Maybe you could reason with her. She said she would inform the other heirs of your "illness"--so you need to make it clear to her by letter that she needs to limit her information to only telling them the name of the specific illness and to give out no further medical information and that your medical records are HIGHLY CONFIDENTIAL and not to be revealed to anyone else. You might want to ask her to sign a statement (that you would draw up) to that effect. You are under no obligation to give her your additional medical records but you can mention that if she wants to review it for her own information that you can meet with her in person so she can look at the documents but she can not keep the documents and that the documents must be handed back to you in person after she has looked at them. The trustee may not understand that she has no obligation to give that information to the other beneficiaries so you need to make it clear that she does not need to do that and you might even want to have your own attorney draft a letter to that effect.

Please explain what year the decedent died. How are you related to the decedent--was this a parent of yours? Is there a reason that the beneficiaries have not been paid anything yet? You may want to consider hiring the services of a Maryland trust lawyer to find out whether beneficiaries have the right to request a recent annual accounting or an accounting for each year the trust has been in existence.
Does the trust specify exact amounts of what each beneficiary is supposed to receive and when they are supposed to receive it? The language of this trust seems to have been written somewhat oddly. You seem to be implying that the trust requires the beneficiaries to make a request to the trustee for monies, when normally a trust automatically designates what amount each beneficiary is supposed to receive and when they are to get it. But you are very lucky that the trustee has apparently agreed to be favorable to your request--I guess because your need is for housing and perhaps medical expenses.