Where does the money go now?

[bherr]

California

My father's inheritance from his mother was set up in a trust. When my father died, the remainder of the money would be split between my brother and myself. My aunt was to be the executor of this trust. She would work out with my dad how the money would be used. The money was put into stocks and has remained there for 15 years. She has never collected any money for fees as an executor and had always stated she would not do that.

Well, my dad passed away last month and I heard from my aunt today. She has now deceided that she deserves her fees from the past 15 years. She wants 2% a year. The original ineheritance only amounted to $200,000, but at 2% a year she now feels she deserves $60,000!!!

My question is, when my father passed away, did the money become my brother's and mine? After his death can she now charge such unbelievable fees? She never asked for it before he was alive. She didn't even do anything to deserve $4,000 a year. The monies just sat in stocks. Can she now take what becomes ours after the death of our dad?

Maybe I am wrong, but I have a real big problem with this. She already got her share of the inheritance when my grandmother died. She didn't want it when my dad was alive, but now that it is mine and my brother's, all of a sudden she wants it.

 

[Dandy Don]

What type of trust is this?

Your posting is a little bit confusing because you have left out an essential detail--is there a will and a trust or just a trust only? If your aunt is executor, she can only be the executor of the will and NOT THE TRUST. If there is a will is the will being probated in probate court? The trust is a private transaction that does not need to go through probate court or any other court and will be handled separately from the will.

Have you seen a copy of the trust? If you haven't, then you have the right as a trust beneficiary to request a copy of it by sending your aunt (who I assume is the TRUSTEE--not executor--of the trust) a certified letter asking for a copy of the trust and an accounting statement showing the total value of the trust.

You were right to be suspicious--she can't claim a retroactive fee based on prior years activity--she is only entitled to collect her fee based on the value of the trust at the time of death. Problem is that trustee fees are confidential (known only by trust attorneys) so you would need to consult with a local trust attorney to find out what the allowable rate is. The trust attorney can advise you of what steps to take if she claims an exorbitant fee--she will have to face legal penalties and will have to repay, so if possible you or your trust attorney should warn her by mail or by letter that she should get legal advice about what the correct rates are for a trustee to charge or else she could face legal consequences.

 

[bherr]

A will with a trust?

My grandmother died 15 years ago. In her will she set up my dad's inheritance as a trust. My aunt was to dole out the money to him over the course of his life. It didn't take many words, but it did say exactly how that would happen. My aunt was the executor and my brother and I would bew co-executors in the case of her death. I believe that everything went through probate at the time of my grandmother's death death. It was then part of my grand mothers will that, my brother and I receive the balance of my father's inheritance when he passed away.

I don't know what kind of trust it was called. It was pretty iron clad. My dad had tried several times to get the whole chunk, but was unable. Don't know why my grandmother did this to my dad.

But thank you for your answer. I really got the answer for what I was looking for. She can't collect year after year, like she thinks she can and deserves. That would nearly eat up the entire inheritance of what is left for my brother and myself. It's amazing what money brings out in people.