3rd party fiduciary for Trust question

[Anonymous]

My mom with whom I was estranged, passed earlier this year. She appointed a cousin (whom I am not close with) to manage her Trust, the total of which will be split for my 2 kids upon turning age 25. They are currently in MS so it's 10+ years for both to go.

The cousin would like to transfer her obligations to a fiduciary after close of her obligations. I do not have any insights into the size of this fund, although at min will be the sale of mom's home, just north of $1M. I know some larger institutional banks require a minimum fund size but so I don't know if we will meet that for a Merrill Lynch, etc. I'd like to spend the next few months interviewing potential 3rd party fiduciary candidates but don't know how/where to start.

My attorney says that while the Trust is written very very poorly and while it's documented I am disinherited from the Trust, there is no documentation otherwise suggesting myself/husband/both of us cannot be Trustees. Opposing counsel is adamant that mom's intention was to have a 3rd party manage the Trust however. Counsel was hired by my cousin and I know my cousin knows that my mom and I were estranged, so I don't know if she is influencing this decision, or if counsel just wants to make things difficult (the practice specializes in elder care not trust law) for us. But, it is pretty clear there is no documentation by way of notes to confirm my mother's intentions. Still, my understanding is judges tend to decide conservatively in these cases, to prevent liability issues.

We are less concerned with being Trustees and intend Trust to provide for private school (currently enrolled) and college tuition for our kids, so it's more a matter of timeline rather than a need to be Trustees. I figure we would either need to spend money to litigate on the front end to become Trustees or if we appoint a 3rd party, they of course will charge for services. Either way, it involves money but easier to let things be. However, I am curious as to whether anyone has successfully petitioned under this situation as the other side s not being forthcoming and cooperative with us. The concern is that they will hold off on distribution of Trust and reject our request for private school tuition later next year. Not sure why they would but it is their right to do so if they desire. The 12 month anniversary of my mom's passing is May so legally, I believe they have to offer us full accounting of the Trust by this upcoming May, but my attorney said there's no telling how long they can hold on to the distribution of funds.

I have 2 questions:

1. I'm looking for the best way to approach finding a place to park the Trust funds once it's distributed and a 3rd party fiduciary to manage this Trust long-term. Any suggestions or referrals please?

2. If anyone has experience in petitioning a Trust to become Trustees of beneficiaries (ie like in our case - grandkids who are beneficiaries, parents to Trustee), how did that decision go?

Thank you!!

[Anonymous]

A third party will bleed a trust that small dry

[Anonymous]

Anonymous wrote:A third party will bleed a trust that small dry

This

[Anonymous]

Anonymous wrote:A third party will bleed a trust that small dry

This. You do it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:A third party will bleed a trust that small dry

This

This, this, this. Fees will be large. You do it for free.

[Anonymous]

You can’t park the distributions. The distributions are for costs that have been or imminently incurred. Private school? They can pay the school directly. Reimbursement to you for legit expenses? Paid to you and deposited wherever you want.

There is zero chance you will be trustee over the money, even if the matter went before a liberal judge.

[Anonymous]

And why does the trust say if the trustee can’t or won’t serve? Does it say the current trustee picks someone?

You’ll be difficult to deal with…

[Anonymous]

Anonymous wrote:And why does the trust say if the trustee can’t or won’t serve? Does it say the current trustee picks someone?

You’ll be difficult to deal with…

What— not why.

[Anonymous]

Sounds like grandma wanted this money for the kids in their adulthood, not to pay for private school.

Too bad she picked someone who wants to quit. Is there no successor trustee named? What is the process laid out in the trust for picking a successor trustee?

[Anonymous]

If your two kids split it at 25, why would you think you could use this for private school or college?

And why would you be the one interviewing anyone as a potential successor trustee?

[Anonymous]

Anonymous wrote:You can’t park the distributions. The distributions are for costs that have been or imminently incurred. Private school? They can pay the school directly. Reimbursement to you for legit expenses? Paid to you and deposited wherever you want.

There is zero chance you will be trustee over the money, even if the matter went before a liberal judge.

I don’t have personal experience with exactly this situation, but if the trust is clear that OP is disinherited, and the current trustee and their counsel are opposed, I can’t imagine that a judge would appoint OP trustee.

[Anonymous]

Anonymous wrote:Sounds like grandma wanted this money for the kids in their adulthood, not to pay for private school.

Too bad she picked someone who wants to quit. Is there no successor trustee named? What is the process laid out in the trust for picking a successor trustee?

I agree and that’s another reason you shouldn’t be trustee and a good reason that your cousin objects to your appointment. If you are paying for private school right now and you want to use their trust now that would mean you’re getting the benefits of the trust.

Getting the courts involved will cost you a lot of money. And your cousin’s attorney fees will be paid from the estate.

Your best bet is to work with your cousin amicably and appoint someone you both agree on.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Sounds like grandma wanted this money for the kids in their adulthood, not to pay for private school.

Too bad she picked someone who wants to quit. Is there no successor trustee named? What is the process laid out in the trust for picking a successor trustee?

I agree and that’s another reason you shouldn’t be trustee and a good reason that your cousin objects to your appointment. If you are paying for private school right now and you want to use their trust now that would mean you’re getting the benefits of the trust.

Getting the courts involved will cost you a lot of money. And your cousin’s attorney fees will be paid from the estate.

Your best bet is to work with your cousin amicably and appoint someone you both agree on.

She has no right to appoint a trustee or agree to the appointment of one. The cousin would violate her fiduciary duty by doing this. The trust should say what happens if cousin can’t or won’t serve. If it doesn’t, a judge will need to decide.

[Anonymous]

Anonymous wrote:If your two kids split it at 25, why would you think you could use this for private school or college?

And why would you be the one interviewing anyone as a potential successor trustee?

That may or may not be true. The trust may provide for HEMS distributions in the interim with the balance distributed at 25 but of course no way to know without seeing the trust.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If your two kids split it at 25, why would you think you could use this for private school or college?

And why would you be the one interviewing anyone as a potential successor trustee?

That may or may not be true. The trust may provide for HEMS distributions in the interim with the balance distributed at 25 but of course no way to know without seeing the trust.

I’m basing what OP said: “the total of which will be split for my 2 kids upon turning age 25.”

She didn’t say the remainder is to be split AND she said the trustee can deny her request for private school money: “The concern is that they will hold off on distribution of Trust and reject our request for private school tuition later next year. Not sure why they would but it is their right to do so if they desire.“ OP has engaged an attorney so I assume based on what she wrote, education expenses aren’t necessarily allowed, but may be discretionary in the trustee’s best judgment.