Will & Trust Document is confusing!

[cat2west]

What is the name of your state (only U.S. law)? California. After his mother died, my husband was left to administer his mother's estate and trust with his sister as co-trustee of the family trust. His sister has not provided any assistance in the administrative duties other than complaining her annual check doesn't come fast enough. After 21 years, she has received all proceeds due her with annual reports of all activities. There is very little residual income, barely eough to justify a bank account.

This will and trust documents is very long and complicated. His sister seems to expect this trust to provide her with money forever but the trust is totally broke and we want to close it and just opperate the remaining small amount of income as the estate. How can we do that? Can we get an analysis of the trust document that will explain our options?

 

[anteater]

Can we get an analysis of the trust document that will explain our options?

Consult with an attorney who has trust experience.

....my husband was left to administer his mother's estate and trust... This will and trust documents is very long and complicated.... and we want to close it and just opperate the remaining small amount of income as the estate.

Your use of "estate" and "trust" is very confusing. A will and a trust document are two different things. A will is admitted to probate and its provisions control the distribution of assets that are part of the probate estate. A trust is generally a private matter and the trust document controls the distribution of trust assets. One generally can't just start flipping assets between a probate estate and a trust.

Since you mention "residual income," there must be a trust asset that is producing that income. Does the trust document provide for selling the asset and distributing the proceeds or distributing the asset itself to the beneficiaries?

 

[cat2west]

Trust has no assets

All assets of the trust were sold and the proceeds distributed evenly for the last 21 years. However there is some small residual income from old movie/TV performances that produce occassional checks for small amounts. The annual total ranges from a couple hundred to a couple thousand dollars per year. The trust document is long and complicated. There are pages of provisions that are filled with legal mumbo jumbo that we don't understand. The document covers LOTS of potential situations, but doesn't address the acting/performance residuals that will continue to produce a small sum every year into the foreseeable future. The ony "asset" would be the name and likeness of the dead actress and/or the continued replaying of her previous performances.

 

[anteater]

Let me ask... Are your husband and his sister the only beneficiaries? Do they share whatever residuals come in? Going forward, would your husband even care if the residuals went completely to his sister?

Someone here may rap my knuckles for suggesting this... But why not distribute the rights to the residuals to the sister and just call it a day?

 

[curb1]

Or, just agree to split with sister any future checks that come. And, terminate the trust.