Trusts Question

[mvanassche]

I know someone who is a trustee of their brothers inheritance ( a trust),given to them by their father because the father knew his son would blow the money on drugs,alcohol,etc. and wanted the money metered out to last his lifetime.(he's 58) The trustee has used her brothers money for personal purposes.Question is, is this illegal,what exactly is the crime,what is the penalty,and how do I proceed to make her stop the abuse? She has taken 17K as of now and is probably milking more ! Thanks,******

 

[anteater]

Please don't ignore the "What is your state?" question.

How do you know all this? What evidence do you have? Can you be sure that the trust does not allow compensation to the trustee and that is what you are observing?

You could contact law enforcement. Depending upon the locality, law enforcement might be interested if it were very large sums in question. But, for this amount, I suspect that you will be told that it is a civil matter. There are only so many law enforcement resources to go around.

It is a breach of the trustee's fiduciary duty to use the trust's funds for the trustee's personal expenses. However, you are not an interested party here. I assume that you have informed the beneficiary (?). It is up to him to pursue the matter if he wishes. You could assist him, for example, by locating an attorney willing to take on the case.

 

[mvanassche]

trustee question

The trustee is my ex wife and the trust is specifically for the on going care of her brother,an inheritance given to him by her Father.Her brother has no clue of whats going on.She will run through his money as she needs because she has no morals.Her brother is mentally challenged and would'nt know what to do if I told him.Is there any way to "whistleblow" this and if so, what is the crime and penalty.We live in PA. Thanks

 

[anteater]

Has a guardian been appointed for the brother? Does anybody hold power to act as an attorney-in-fact for him under a POA?

Is there any way to "whistleblow" this ...

What does that mean?

As I said, you can try contacting the DA's office. Or a local agency that deals with the mentally handicapped. Or you can contact a couple attorneys with trust/probate experience.