Trustees for Family Trust Wont Give Me Money

[ovrdumoolah]

Hawaii

Hello,

I need help interpreting these notes in layman’s terms. I have been named a beneficiary by my deceased relatives more than a decade ago. So far, I have not received a single dime from the Family Trust. These notes are copied from my “Notice to Beneficiary”

"Under the terms of the Agreement, you have the right to annually demand from the Trustee, out of any additions or transfers made by the trust during a calendar year, an amount not exceeding the lesser of:

(a) The aggregate of any additions or transfers to the trust during the calendar year, or

(b) (i) The amount of the annual gift tax exclusion as provided in Section 2503(b) of the Internal Revenue Code, or as such section may be amended from time to time, for any calendar year in which the transferor has no living spouse at any time during that year, or (ii) Twice the amount of annual gift tax exclusion as provided in Section 2503 (b) of the Internal Revenue Code, or as such section may be amended from time to time, for any calendar year in which the transferor has a living spouse at the time of any addition to the trust.

If in any calendar year you wish to exercise your right to make such withdrawal from the trust, you have until December 31 of such year to make a demand upon the Trustee. The Trustee must distribute the amount demanded, in cash or in kind, within 15 days after the receipt of a demand from you; provided, however, that the distribution cannot be made later than December 31 of such year.

Each year, if you do not exercise your right of withdrawal by December 31, your right will lapse; provided, however, that if any property is added to the trust after October 31, your right to withdraw such property will not lapse until December 31 of the following calendar year."


Thank you for help

 

[curb1]

Who is the trustee? How much are you entitled? Are you entitled to enough that it would be worthwhile to hire an attorney? Have you received any kind of an accounting of the trust? What kind of communication do you have with the trustee? Are there other beneficiaries, and have they received anything?

 

[justalayman]

"Under the terms of the Agreement, you have the right to annually demand from the Trustee, out of any additions or transfers made by the trust during a calendar year, an amount not exceeding the lesser of:

in the decade or so you have been the bene, have you made a demand for money or are you simply waiting for the trustee to hand you some cash?

 

[anteater]

Sounds pretty Crummey to me.

 

[tranquility]

Hah! You've been coming up with some good ones lately.

 

[Kiawah]

Not a lawyer, but my interpretation.

That section sounds like it lays out the withdrawals possible while they were still alive:

a.) sounds like if someone put money into the trust, that you would be allowed to withdraw an equal amount out. If the relatives are deceased, they wouldn't be putting any money into the trust, therefore you wouldn't be allowed to take anything out.

b.) is tied to the amount of money that anyone annually can give someone else gift tax free. Since the party was deceased, they're not able to give anybody money, therefore you wouldn't be allowed to take anything out with this clause either.

You may want to get with a lawyer, get him/her to ask the trustee for a complete copy of the trust document, and have your lawyer interpret what you can or can't do.

 

[tranquility]

Research, "Crummey".

 

[anteater]

Hah! You've been coming up with some good ones lately.

I've adopted a new motto:

"A foolish sobriety is the hobgoblin of little minds."

I feared that you had ruined my little pun.

Then again, maybe the trustee is on autopilot, churning out the letters year after year.

 

[ovrdumoolah]

Who is the trustee? How much are you entitled? Are you entitled to enough that it would be worthwhile to hire an attorney? Have you received any kind of an accounting of the trust? What kind of communication do you have with the trustee? Are there other beneficiaries, and have they received anything?

The trustees are my mother, her sister and brother. I don't know much I'm entitled to since my deceased grandparents put their multiple rental home properties in the Irrevocable Family Trust. I have not received any kind of accounting of the trust -my mother refused to communicated with me ever since I asked for the copy of the Family Trust. My brother and my other cousins are also beneficiaries and I'm not sure if they received anything. I also don't have any communications with all them. I have not demanded anything since I'm not sure how much and if any entitled to anything.

 

[justalayman]

You need to take the entire trust document to an attorney that can read, interpret, and advise you as to your rights. The other folks were speaking about a Crummey trust where you can only take out money for a short period of time after it is deposited. It is a method to avoid some taxes.

The highly restrictive rules about taking money out that you posted tend to support this was a Crummey trust. There will be other sections of the trust documents that deal with the trust in the longer term. That is what you need to obtain and read.

 

[ovrdumoolah]

You need to take the entire trust document to an attorney that can read, interpret, and advise you as to your rights. The other folks were speaking about a Crummey trust where you can only take out money for a short period of time after it is deposited. It is a method to avoid some taxes.

The highly restrictive rules about taking money out that you posted tend to support this was a Crummey trust. There will be other sections of the trust documents that deal with the trust in the longer term. That is what you need to obtain and read.

Thank you all for the information you have shared.
Here are a few sections of the Irrevocable Trust Agreement.

1. The Trustees shall until termination of this trust pay all of the net income of the trust estate in equal shares to or for the benefit of those who shall be surviving from time to time of Settlors’ children, _____, ____and ____, and of the issue per stirpes of any of Settlors’ said children who shall not be then surviving. Payments of said net income shall be made at time fixed by the Trustees but at least of often as annually and, if practicable, in regular periodic payments.
2. The trust shall terminate when all of Settlors’ children shall have died and either the youngest of Settlors’ living grandchildren shall have attained the age of thirty-five (35) years, or all of said grandchildren shall have died. Upon such termination, the Trustees shall transfer, convey and deliver all of the remaining principal of the trust, together with any unpaid income, as follows:
a. One-third (1/3) to______’s issue per stirpes.
b. One-third (1/3) to______’s issue per stirpes.
c. One-third (1/3) to______’s issue per stirpes.
d. If there shall be a failure of takers under any subparagraphs A through C above, said lapsed share shall increase proportionately the shares passing under the other of said subparagraphs in which there are takers.
3. Notwithstanding anything to the contrary, the trust created under this instrument shall terminate no later than twenty-one (21) years after the death of the last survivor of the Settlors and Settlors’ issue living on the date of the execution of this trust, at the end of which period the Trustees shall distribute the remaining trust property as then constituted in accordance with the provisions of Paragraph 2 above.

 

[justalayman]

are the settlor's children your parent and his/her siblings? If so, it would appear that your parent and the others are entitled to benefits of the trust now. It would appear that after that generation has all died and all of the children of that generation have reached at least the age of 35, the trust would be terminated and the property of the trust would then be distributed to the settlors children (grandchildren of the settlor) which would appear to be you and your cousins.

that would make you, your brother, and your cousins successor beneficiaries.

It does direct the share of any of the settlors childrens to be paid to that persons children should the settlors child die before the trust is terminated. In other words, if one of the beneficiaries dies, if they have children, their currently paid benefits would then be paid to their children.

So, if your mother is still alive, you don't get anything right now. If your mother dies before her brother and sister do, you and your brother will then get her share of the payments. Then, once your mother, her sister, and her brother all die and all of your cousins (children of those 3 people) and you and your brother reach the age of 35 or greater, the trust will be terminated and the property divided among you and your cousins.

there are a few more clarifications but that is the gist of the trust.

 

[ovrdumoolah]

are the settlor's children your parent and his/her siblings? If so, it would appear that your parent and the others are entitled to benefits of the trust now. It would appear that after that generation has all died and all of the children of that generation have reached at least the age of 35, the trust would be terminated and the property of the trust would then be distributed to the settlors children (grandchildren of the settlor) which would appear to be you and your cousins.

that would make you, your brother, and your cousins successor beneficiaries.

It does direct the share of any of the settlors childrens to be paid to that persons children should the settlors child die before the trust is terminated. In other words, if one of the beneficiaries dies, if they have children, their currently paid benefits would then be paid to their children.

So, if your mother is still alive, you don't get anything right now. If your mother dies before her brother and sister do, you and your brother will then get her share of the payments. Then, once your mother, her sister, and her brother all die and all of your cousins (children of those 3 people) and you and your brother reach the age of 35 or greater, the trust will be terminated and the property divided among you and your cousins.

there are a few more clarifications but that is the gist of the trust.

Too bad, my mother is not going to die soon.
It makes sense. Thank you, it saved me a lot of time and money.

 

[justalayman]

Too bad, my mother is not going to die soon.
It makes sense. Thank you, it saved me a lot of time and money.

since this seems to have caused discord in your family, if your thoughts you were not receiving money you were due, you might consider an apology. Humble pie may not taste very good but is sure does have some fantastic medicinal properties.

 

[ovrdumoolah]

since this seems to have caused discord in your family, if your thoughts you were not receiving money you were due, you might consider an apology. Humble pie may not taste very good but is sure does have some fantastic medicinal properties.

I appreciate it. But I omitted the section below on my "Notice to Beneficiary" because I felt stupid and manipulated for believing my mother's sob story when I want to withdraw the money - (I was in college then) She said that the trust don't actually have the thousands of dollars I'm entitled to, etc. I didn't get a dime until all my rights to withdraw lapsed. Not to mentioned the few thousand dollars cash my grandparents gave me.

"This is to inform you that we will be gifting to the trust an undivided 2/3 interest in 123 Trust Rd, City, State (valued at approximately $0,000,000.00) by the end of this year. Out of this gift, you will have the right to withdraw $00,000.00 and your right to withdraw will lapse by the end of 0000. If you wish to exercise your right to withdraw, please let the Trustees know as soon as possible."