Trustee withholding from beneficiary

[lutsen4us]

What is the name of your state? Nebraska

I am a beneficiary named in my grandmother's trust. She passed away this past June. My aunt is the trustee. My grandmother left a specific amount to me. My grandmother loaned my spouse $5000 7 years ago; loan was written on the check in the memo section. I knew nothing about the loan until many years later. My spouse repaid my grandmother 2 and a half years ago, but all he has are copies of checks he wrote for cash and gave to her. The checks total $5,000. I was very close to my grandmother, which has always aggrevated my aunt. She is actually the one who first told me about the loan to my spouse about 6 years ago in a nasty conversation. My aunt, acting as trustee, distributed my specific amount, minus the amount loaned to my spouse years before, and said I had to prove he paid it back. We provided copies of checks that were made for cash, but she says she does not see any corresponding deposits. I have asked for copies of my grandmother's statements to see for myself, as my aunt is known to be less than honest. My spouse and I know he paid it back, but I know the burden of proof lies with him. My question is mainly: can a trustee automatically withhold a portion of a distribution to a beneficiary for an amount alegedely owed by a third party (spouse)? Also, the attorney representing my aunt tells me I am not entitled to the copies of the bank statements to verify if deposits were made. Grandma would not have wanted any of this, I guarantee it! Any advice you can offer would be greatly appreciated....thanks!

 

[prariedogcop]

I too have a similar problem. This one however is based in the State of Connecticut, but my spouse and I live in Arizona.

My wife's aunt is withholding the total of an amount determined by my wife's late grandmother.

We have ot seen a dime, and are unable to get in contact with the Executrix of the will.

Any suggestions on what we can do to expedite the distribution of this amount?

PrarieDogCop...

 

[Dandy Don]

Do your cancelled checks show some type of stamp/endorsement/coding (either on the front or on the back of the check) that definitely shows that the check was processed at one particular bank and probably also shows the account number of your grandmother's account?

Does the back of the cancelled checks show your grandmother's endorsement?

If the answer to either of these 2 questions is yes, then you have furnished sufficient, valid evidence that this loan was repaid.

It looks as if this aunt is just continuing her mean streak (I hope she is not trying to cover up the fact that maybe SHE stole the $5,000 herself) and of course the attorney is going to say you all don't have the right to see the bank statements--that is the most ridiculous thing I have ever heard and of course does not make sense. So what if she can't confirm whether the deposits were made--if they would show you the statements, then YOU all could show her where the deposits were made and then she couldn't put you off any longer. This amount is being improperly withheld.

Take her to small claims court (or file a civil suit) to get your money back. And also talk to a local trust attorney to find out if she could be charged with breach of fiduciary duty and then possibly replaced with someone else as trustee.

Do you have a copy of the trust?

DANDY DON IN OKLAHOMA ([email protected])

 

[lutsen4us]

The checks were written out to our bank for cash, and then my spouse gave the cash to my grandmother. The checks total $5000 exactly, and there are no other checks on our account written for cash the 7 years of records we verified. I am still waiting for copies of grandma'a accounts to verify what my aunt is saying, that they do not see corresponding cash deposits. I highly doubt grandma would have left $5000 in cash around the house...I know she had to deposit it!

I am wanting my aunt to go through the "proper" steps to validate this....I think she should not be able to automatically withhold it from me (the beneficiary), and should have to go through the appropriate process to prove the debt is owed and was not repaid by my spouse?

 

[Dandy Don]

Even if what you said is the absolute truth, your story appears a little bit suspicious because the aunt could claim that your spouse kept the cash himself and that the check should have technically been made out to the grandmother instead of to "CASH". However, if you are telling the truth, then the other side is not showing good faith by not letting you see the copies of the bank statements.

If I were you I would not raise a big stink about this until you get your check from whatever your share of this trust is going to be be, but since the trust is a private matter that is not reviewed by the courts, there is no way to get this matter resolved unless you take her to small claims court.

DANDY DON IN OKLAHOMA ([email protected])

 

[prariedogcop]

Hello All:

Re: My Case above (From CT):

The executrix of my grandmother's estate has put distribution of our benefits in the hands of her attorney.

Her attorney has told us that they will get around to distributing the $$ "when it is convenient for them."

I was wondering if there is a specific period of time that the distribution must take place by, or can the attorney take as much time as they want?


Prariedogcop