Right to see instrument or obtain other trust info?

[madacebo]

What is the name of your state?What is the name of your state? New York (I am a resident of California)

I and all of my maternal relatives are equal beneficiaries of a trust drawn up in New York, which will be liquidated in 2008. My aunt is also a trustee and the "designated representative" of our branch of the family. 2008 is right around the corner, so I'm interested in finding out more about the trust. I was able to find out the current value of the assets from my grandfather and calculate the current number of beneficiaries (any children born to current beneficiaries between now and then will also be beneficiaries), and that is pretty much all of the information I have.

I believe the institutional trustee was the State Bank of Albany, which would now be... Bank of America?

I wrote my aunt a list of questions about the trust and also asked to see a copy of the instrument. She didn't answer but instead delegated the task of discussing the trust with me to my mother, who is not a trustee and doesn't have any more information than I do. This trust was drawn up decades ago and may have any number of oddball provisions in it, so I really want to see a copy of it before 2008.

Q: Does my aunt have a legal obligation to let me see the trust instrument, answer my questions, or otherwise provide me with information about the trust (e.g. confirm that BoA is in fact the institutional trustee)?

Q: Do I have a right to know what her compensation as a trustee is, and whether or not it's in line with the terms of the trust?

Q: Do I have a right to know if she and the other trustees have been managing the assets of the trust in accordance with its terms, or have in any way acted in breach of their fiduciary duty to me?

Q: Can I request information from the institutional trustee?

Thanks!

 

[seniorjudge]

Q: [all of them above]

A: Yes.

 

[Dandy Don]

You need to be consulting with a New York trust attorney, since it is most unlikely that one would be reading this message board. I couldn't find anything in New York law that permits trust beneficiaries to ask trustee for trust information, but maybe I'm overlooking something.

 

[madacebo]

Update:

I and the rest of the beneficiaries received a Waiver of Citation and Consent in Accounting form, accompanied by a letter requesting we sign the waiver and a VERY brief summary of accounting for the trust corresponding to 6 of the last 7 years, from a law firm hired by the three trustees.

I first asked one of the trustees for a copy of the trust instrument on June 6, 2005, and have only gotten foot-dragging in response. I'm shocked that I'm being asked to sign this thing after never EVER having received any type of information relating to the trust from the trustees.

I emailed the lawyer and one of the trustees saying that I want a copy of the trust instrument before signing the waiver. I won't be surprised if I don't get a response from anyone.

I did a lot of searching on this web site and elsewhere last night looking for New York trust-related info, and it seems pretty clear New York trust law doesn't give me the right to see the instrument. I must have a right to see SOMETHING though, don't I? How can I be expected to sign off on the accounting without having any idea how this trust was meant to have been managed?

I can't imagine that my situation is unusual or that this issue doesn't come up very frequently in relation to New York trusts. So where's the precedent? Do I need a Lexis-Nexis account to find out how this issue is normally handled?

My best option, at the moment, seems to be to not sign the waiver, get cited, and send a representative to court in my place (I live outside the country and have an attorney in the family who, while not a trust lawyer, lives in and is licensed to practice in New York).

Hiring a lawyer over a Waiver of Citation seems like overkill to me. What would you do?

 

[Dandy Don]

Hiring a lawyer is NOT overkill, because then you would get definitive answers to your questions and not just try to research what the complicated NY trust law says. Or post to another free legal advice website called www.lawguru.com

There are particulars about how you request trust information and your attorney can tell you the correct procedure and how to ask for an accounting and tax return copies and for what years. And your attorney can be a buffer between you and trustee so HE can ask the delicate questions you are asking (don't go in like gangbusters accusing or implying the trustee of mismanaging the trust--that can only cause them to be more reluctant to deal with you or fulfill your requests). And you also need to ask your attorney if you can ask this trustee to post a trustee's bond to protect the financial interests of the beneficiaries if there is not already a requirement in place to exempt such a bond.

And please don't ask her what her compensation is when you can easily find that out from any trust attorney.

DANDY DON IN OKLAHOMA ([email protected])