Vindictive Trustees

[4hope]

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

What can be done to ensure I receive my monthly stipend from my parent’s trust?
I don’t know how to direct my attorney and because of the cotrustees behavior, I am about to go homeless.

My brothers are co-trustees and I am equal beneficiary. I received a ruling from a judge that I am not contesting the trust although the brothers fought me tooth and nail. Just as I am about to file papers to get them removed and compel an account, the cotrustees cut me off financially. They say the trust is broke.

They have been fighting each other using separate attorney firms and paying their attorneys tens of thousands of dollars every month from out of the trust! They have ripped off all the valuables, refused to account, mismanaged the trust, misappropriated trust assets.

Now one brother marched into court (without serving me properly) for instructions to start liquidating the r/p assets. His attorney advised them to start taking out loans against the r/p because there is no money left at all. The judge was pretty ticked off and put it over 90 days.

They drained the trust of all liquid assets. Now they are attempting to sell everything out from under me so there is little left but peanuts.

What can a judge do to protect my parent’s hard earned money? Is there some kind of court order I can get so that my stipend (family support) is paid during the course of this litigation?What is the name of your state (only U.S. law)?

 

[Dandy Don]

How much were you receiving? You can not expect to continue to receive a stipend when the trust is almost out of money. The very fact that they have not been providing you with an annual accounting as provided by law is very suspicious. You need to go ahead and proceed with the action to compel the accounting and get them removed, if your attorney will agree to do this. You may want to ask your attorney (or another trust attorney who has experience with trust litigation) whether you need to file a separate, different lawsuit alleging breach of fiduciary duty and any other illegalities which they might be potentially guilty of.

Also ask your attorney to find out whether these trustees posted a trustees bond or did the trust exempt that specific requirement.

 

[4hope]

How much were you receiving? You can not expect to continue to receive a stipend when the trust is almost out of money. The very fact that they have not been providing you with an annual accounting as provided by law is very suspicious. You need to go ahead and proceed with the action to compel the accounting and get them removed, if your attorney will agree to do this. You may want to ask your attorney (or another trust attorney who has experience with trust litigation) whether you need to file a separate, different lawsuit alleging breach of fiduciary duty and any other illegalities which they might be potentially guilty of.

Also ask your attorney to find out whether these trustees posted a trustees bond or did the trust exempt that specific requirement.

The trustees did not post a bond. They trustees have allowed a disinherited sibling to live for free in my mother's house. He destroyed the house. A host of questionable activity has occured. Meanwhile, first thing my attorney did was seek Declaratory Relief that I am not contesting the trust to have them removed as trustees, to compel an account, and to reform the trust because the cotrustees have are defrauding me by holding my inheritance under false pretences. The court ruled in my favor. BUT, the trustees bought time (a year) and took it to the Court of Appeals! The Appellate court also ruled in my favor big time. Now it if about to go into the trial (probate) court in two weeks the window is over and I can file my papers to have them removed. There is properties but the trustees mismanaged it. All I was getting was $2,000 a month and that my attorneys made them agree to. Now, they are playing economic warfare..drained the trust of nearly 1 mil in cash, and are crying because now that they are about to get the axe, they have no more money left in the trust to fight me!
Instead, they fought against each other for control. When the one brother marched into court behind my back without serving me to demand to have a fire sale so he can cut and run, the judge stayed it for 90 days. What can be done so I can get family support if my mother was helping with my support before she died? I think I qualify, but my attorney doesn't seem to know what to do, or hasn't had this experience, and he is working for no pay until the case is settled. I just wonder, hey, they laid themselves 3% in pay, paid a host of other people to do all the work, used the money to pay for their infighting and I am the one who is suffering. How can I get the court to as an emergency, order the trustees to keep paying this stipend? Thank you for your understanding and your help.

 

[Dandy Don]

You have not mentioned how much money is left in the trust now, while you stated previously that the trust fund has been "drained".

 

[4hope]

The cotrustees claim there is only $13,000 left. They told us there was $950,000 in cash which they blew through in less than two years. There is supposed to be some stocks, 13 properties, and whatever else. Coin collection, valuables, etc. and a bunch of gold bullion (coins) which they refuse to document how much they have but say they want to sell it but still won't pay my family support stipend. It is (was?) a sizable estate. Today is the 1st and I am frantic.

My attorney is certainly happy to file to the papers to get these people from off of the trust. The cotrustees are being vindictive and retaliatory because I won in the court of appeals. Isn't it criminal to walk off with money from a trust like this? How do other people obtain family support from a trust while matters are being litigated? I was getting a stipend until they suddenly cried, "the trust is broke." We're talking about a lot of money here so a lousy $2,000 is relativley nothing to them. Any emergency methods available? TRO? My attorney said, if we file a seperate petition it is going to take months to litigate it for the court to make a decision, by that time, I will be living out of my car on the side of the road while the cotrustees are enjoying their luxury life.

 

[Dandy Don]

If they furnished you with a regular annual accounting statement, didn't you scrutinize/review it to see how much their expenditures were and whether they were appropriate or unreasonable?

 

[4hope]

If they furnished you with a regular annual accounting statement, didn't you scrutinize/review it to see how much their expenditures were and whether they were appropriate or unreasonable?

They furnished me with an unverified preliminary accounting which shows they are fighting each other with separate law firms being paid tens of thousands of dollars per month. They paid themselves 3% salary it shows. There are discrepancies I shouldn't get into over the internet.

But my question is, what can be done to ensure a beneficiary receives their monthly support stipends when the trustees are playing hardball. They are talking taking loans out against property to fund their war. Why can't a court intervene? I am about to lose my roof. As a woman, that would be extremely unsafe. My health has been compromised and I cannot work now. How can I get a judge to make them pay?

 

[tranquility]

They're not "having a war", they're defending the trust.

At least that's what they'll say, and, until proven in court to be otherwise, they'll use trust funds for that defense.

Your only hope is to get your own attorney and challenge them for what you perceive to be a breach of the trustees' fiduciary duties. They'll use trust funds to defend themselves there too, while you'll have to be on contingency or on your own dime. Still, if you win, you will probably get an order for them to repay the trust for the defense costs.