Anyone here know about trust funds? (lawyer, Fidelity, interest, tax)
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Without getting into much details because you never know who is reading and I have reason to be paranoid....
Adult(s) inherited a "revocable" trust fund set up by a parent who died.
There is one adult grandchild who is way over 21. The other is under 10 years old and does not seem to be relevant.
Is it possible that because this adult child exists, that the parent could inherit more money out of that trust due to having a child? Despite the fact they live in different states and the child is in no way being supported by the parent? The parent in question has a drinking problem and says to much after a few shots and now there are questions. The parent is also doing odd things like they need proof of a relationship with this child such as taking pictures and collecting receipts from things like dinner and an event that the parent insisted on taking the child too. Just very odd behaviour that goes beyond bonding. This adult has also been in close contact with an accountant or trustee person to the point where meetings are kept in secret. Something is just very odd and there seems to be an agenda by the new bonding attempts.
If its generation-skipping the parent isn't really entitled to the money however, it can support the child's life to a point; that might explain the collecting of receipts possibly.
A trust can say anything. Read what the trust says. Also a "trustee" should be appointed in the trust. That person has a legal responsibility to do what the trust says.
Do you have a copy of the trust document? This could be at the lawyer's office, in a safe deposit box, in the deceased person's files at home, and it possibly could have been "recorded" at the county recorder's office.
Property such as a home and/or bank accounts may be in the name of the trust. If you get the exact name of the trust, that may help you find the document at the county recorder's office.
These can have any name. But probably something like John B. Doe Trust, or Doe Family Trust, etc.
If its generation-skipping the parent isn't really entitled to the money however, it can support the child's life to a point; that might explain the collecting of receipts possibly.
The parent is entitled to money. It's whether or not the child is entitled to some is the question. Most sources say it is unlikely because grandchildren are usually not written into trusts even though there are only 2 grandchildren with no possibility of more.
Quote:
Originally Posted by Billy_J
A trust can say anything. Read what the trust says. Also a "trustee" should be appointed in the trust. That person has a legal responsibility to do what the trust says.
Do you have a copy of the trust document? This could be at the lawyer's office, in a safe deposit box, in the deceased person's files at home, and it possibly could have been "recorded" at the county recorder's office.
Property such as a home and/or bank accounts may be in the name of the trust. If you get the exact name of the trust, that may help you find the document at the county recorder's office.
These can have any name. But probably something like John B. Doe Trust, or Doe Family Trust, etc.
I know the exact name of the trust and have seen bits and pieces of documents but nothing that answers my questions. Everything is really under lock and key. The Trustee is a relative. This family didn't get the money they did by being honest people. Thank you. I guess the next step is going to the county recorder's office or probate office.
The parent is entitled to money. It's whether or not the child is entitled to some is the question. Most sources say it is unlikely because grandchildren are usually not written into trusts even though there are only 2 grandchildren with no possibility of more.
I know the exact name of the trust and have seen bits and pieces of documents but nothing that answers my questions. Everything is really under lock and key. The Trustee is a relative. This family didn't get the money they did by being honest people. Thank you. I guess the next step is going to the county recorder's office or probate office.
If its worded something like "John Doe Family Trust" that would include all family members, even the child, if its his family's trust. I don't think I like the idea of the trustee being a relative but not sure you can do anything about that.
You can also request an "accounting of the trust" by the trustee. Or tell them you are going to want an accounting. Might want to tell that to the accountant.
The parent is entitled to money. It's whether or not the child is entitled to some is the question. Most sources say it is unlikely because grandchildren are usually not written into trusts even though there are only 2 grandchildren with no possibility of more.
I know the exact name of the trust and have seen bits and pieces of documents but nothing that answers my questions. Everything is really under lock and key. The Trustee is a relative. This family didn't get the money they did by being honest people. Thank you. I guess the next step is going to the county recorder's office or probate office.
For anyone to answer this accurately, you have provided way too little info. Not specific info, so as to keep you totally anonymous, but things like as one of the other posters stated, what is the relationship of the trustees (don't understand the 'lock and key' nature, but that doesn't sound like a great relationship there), and the terms of the trust, etc. Time for a trust lawyer.
The way I have usually seen it done (and my sample size is small), is that each parent sets up a trust, which they fund, including the house and most assets, and then upon the death of each parent, the assets from their trust get rolled over into a 'family' trust. Then it is distributed to the beneficiaries under the terms of the trust. The trust pays all the taxes involved. (This has nothing to do with a GST).
Been there, done that. Parents had three, I have a few (even one for the dog). While the tax implications can be beneficial, closing out the trusts upon death are a PITA for the heirs. You will get to know the local bankers well to obtain signature guarantees many a time.
If its worded something like "John Doe Family Trust" that would include all family members, even the child, if its his family's trust. I don't think I like the idea of the trustee being a relative but not sure you can do anything about that.
Happens all the time. The trick is just to not have one relative on it, but at least two. The goal obviously is to avoid conflict-of-interest.
i am looking to set up a trust and im not sure what the first step is. i figure i need an attorney. i want to use someone near where i live. i see fidelity has some kind of service for trusts, i wonder if a good first step is to just reach out to them to get a little guiance. anyone have experience setting up a trust? the basic purpose is to pass along money to my children and making sure the government gets as little as possible.
I am going through the same thing not just for me but my whole family. The process hasn't started yet so I don't have first hand knowledge but probably the attorney would be the best source to consult about the specifics of what you want exactly. I can't find all the information I want online so were supposed to talk with an estate planner.
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