Please help me understand distribution document...

[ajkroy]

What is the name of your state? NH, but estate is in FL

Hello all. I have been here before and received terrific advice. I thank all who take the time to read and respond.

I am an heir to my deceased father's estate. Due to some problems with one of the trustees, I hired a lawyer to protect my own interests. Almost the entire estate is wrapped up in real estate, which has been difficult to sell in this economy. We finally have an offer on one house and are closing tomorrow. At the last minute, I was asked to sign a "Proceeds Distribution Letter". I have not yet signed it because my lawyer hasn't given me his opinion about it...and I don't think I am going to hear that opinion prior to the closing. Would any of you please read this and tell me if I would be doing irreparable harm by signing it? I have already signed a limited POA to another family member to sign on my behalf at the closing tomorrow.

Proceeds Distribution Letter

I do hereby authorize (Title Company) to distribute the sale proceeds from the following property (property location) in the following manner:

100% of the Proceeds of the sale for the above described property to be distributed to (co-trustee 1) and (co-trustee 2), as Successor Trustee of the (father's name) Revocable Trust Agreement dated 9/9/05, as to an 88% interest and and (co-trustee 1) and (co-trustee 2), as Co-Trustees of the (father's name), Irrevocable Trust dated 12/15/05, as to a 12% interest for the purpose of paying toward Federal Estate Taxes

I have written this EXACTLY as written (even with the extraneous "and") with all punctuation. I barely even understand it! Can someone please help me read this?

Thank you for any advice.

 

[Dandy Don]

With a matter of this importance if you don't want to ask your own lawyer about this then you need to ask another local lawyer.

What are the "problems" with one of the trustees?

If this property is titled in the trust, then the trustees should be handling the distribution and your attorney needs to question even the need for this document to exist--it appears that they are trying to distribute the monies outside of the trust, which may be improper or illegal. If this property is from the estate, then the executor should be distributing the monies.

If you have a copy of the trust you need to compare the distribution language of the trust to the distribution language in this document to see if the distribution is the same or different than stated in the trust--it is the trust that should be followed and if this differs from the trust, do NOT sign the distribution letter without the advice of an attorney. The trustees may be trying to cheat the beneficiaries in order to keep more for themselves.

DANDY DON IN OKLAHOMA ([email protected])

 

[ajkroy]

That's what I was afraid of...

Thanks, Don, for your reply. I just pulled out a copy of the trust and the wording is very different from this document. I sent this document to my own lawyer, but he has yet to get back to me. Unfortunately, I know that the trust documents are not whole.

My sister is one of the trustees and has been very secretive about many aspects of the trust, including refusing to reveal the assets and refusing to give me contact information for the trust lawyer and the trust accountant, even though I am entitled to one sixth of the estate (as is she). My estimation of the estate tax is far lower than what she says we have to pay...which tells me she knows of assets I do not. Or maybe she is just poor at math.

She said that dad wanted to minimize his "ownership" of the estate, thus minimizing the estate tax; which is why the above document outlines an 88%-12% split. I find it frustrating that she sends me that document roughly 16 hours before closing and tells me I MUST sign it (practically ensuring I don't get a legal opinion).

My lawyer says we need to have her investigated for breaching her fiduciary duty because she has been spending a great deal of money since our dad passed. I DID sign the above document (I was told the deal would be canceled if we couldn't close on time), but only AFTER securing the name and information of the estate lawyer. I have passed the info on to my lawyer and I can keep you posted, if you wish.

Again, thanks for your help. I appreciate your advice.