Surprise Trust Document in the Mail

[Anonymous]

I received a fat envelope in the mail from a bank and opened it. Inside was the full account breakdown of a trust that is not in my name. It is A LOT of money. I wrote the bank and asked why I received it and turns out I am a "remainder beneficiary" of a trust belonging to my uncle. It was set up a long time ago by a long dead relative. My other sibling is a beneficiary as well. We are both confused. The bank wasn't forthcoming on more information and I am not close with my uncle... at all. He is unmarried, no children of his own, and generally a rather unlikable person so I don't think he would be receptive to questions and I don't feel comfortable asking them. So I only have you, DCUM. I can't really discuss this with friends either.

I have no personal experience with trusts... so basically I am curious if this money can be considered "mine" for future planning purposes? I assume it will be passed on when he dies. Would it stay in a trust or would it be dissolved? Is the money taxed at that point? He is in his mid-70s but could he still spend it all down if he wanted? I assume there are restrictions on how much can be pulled from a trust. It is $15 million dollars so he would have to work real hard to spend that down. He hasn't seemed to touch it thus far. Why would he not mention it to me, or why would the bank not reach out to me to discuss it before I got this random envelope in the mail? I think the bank is the trustee.

Obviously a lot of questions - thanks DCUM for your help on this very niche question. I get along fine but I am not rolling in money so if I know retirement is funded, it would be a huge weight off my shoulders and that of my family.

[Anonymous]

With that much money at stake.you need to speak to an attorney and accountant. Seriously. Take that paperwork to a lawyer specializing in Wills and trusts before you do anything else.

[Anonymous]

OK thank you ... I thought maybe I couldn't go to a lawyer if technically the trust isn't mine - it is his name and I am just the remainder beneficiary, correct?

[Anonymous]

Anonymous wrote:OK thank you ... I thought maybe I couldn't go to a lawyer if technically the trust isn't mine - it is his name and I am just the remainder beneficiary, correct?

You can always hire your own attorney. And with any significant amount of money involved, you should.

[Anonymous]

I would call him and say thank you and just check on him to see if he is ok or needs anything. Hopefully he didn’t do this because he is sick or something. Not sure what other people think

[Anonymous]

Anonymous wrote:I would call him and say thank you and just check on him to see if he is ok or needs anything. Hopefully he didn’t do this because he is sick or something. Not sure what other people think

Based on the description here, I don't think the trust is from the uncle. It sounds like maybe the grandparents or some other relative set it up with the uncle as a beneficiary and then named the original poster and sibling as remainder beneficiaries (probably as heirs of their parent who is the uncle's sibling). If he's not otherwise close to uncle it may not be a good idea to talk to him about it.

[Anonymous]

Anonymous wrote:I would call him and say thank you and just check on him to see if he is ok or needs anything. Hopefully he didn’t do this because he is sick or something. Not sure what other people think

No, do t do this. It has nothing to do with him. Likely was set up by your grandparents. I have a trust like this. I not counting on the money, but I know that my aunt uses it and the women in my family live to be almost 100.
If you are in Va, make an appointment with Debby Cochran in Tyson’s. She’s great.

https://cochran.law/

[Anonymous]

Do you have the actual trust document? If so, have you read it? It may answer many of your questions. As her successor trustee, I administered my aunt’s trust ($300,000) when she became unwell and I used it to pay her expenses while she was alive and the trust had explicit instructions for how to distribute assets when she died. I don’t see why you need a lawyer unless you can’t understand what the document says.

So, what does it say? There is a reason the bank sent it to you, and I don’t know what that reason is. They have no obligation to notify beneficiaries until the assets are going to be transferred. Then there is a requirement in most states to notify beneficiaries within 60 days that they are a names party to a trust.

Step 1: read the documents

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would call him and say thank you and just check on him to see if he is ok or needs anything. Hopefully he didn’t do this because he is sick or something. Not sure what other people think

No, do t do this. It has nothing to do with him. Likely was set up by your grandparents. I have a trust like this. I not counting on the money, but I know that my aunt uses it and the women in my family live to be almost 100.
If you are in Va, make an appointment with Debby Cochran in Tyson’s. She’s great.

https://cochran.law/

Thank you for this contact

[Anonymous]

Anonymous wrote:Do you have the actual trust document? If so, have you read it? It may answer many of your questions. As her successor trustee, I administered my aunt’s trust ($300,000) when she became unwell and I used it to pay her expenses while she was alive and the trust had explicit instructions for how to distribute assets when she died. I don’t see why you need a lawyer unless you can’t understand what the document says.

So, what does it say? There is a reason the bank sent it to you, and I don’t know what that reason is. They have no obligation to notify beneficiaries until the assets are going to be transferred. Then there is a requirement in most states to notify beneficiaries within 60 days that they are a names party to a trust.

Step 1: read the documents

Actually this is in Maryland and the bank told me according to Maryland law, the beneficiaries do now legally have to get annual statements of the trust. I do not have the actual trust document though. Just a bank statement of the various investments. I will ask the bank if they can send me the actual trust document then. I’m not sure if it will be permitted if in his name but I can try.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Do you have the actual trust document? If so, have you read it? It may answer many of your questions. As her successor trustee, I administered my aunt’s trust ($300,000) when she became unwell and I used it to pay her expenses while she was alive and the trust had explicit instructions for how to distribute assets when she died. I don’t see why you need a lawyer unless you can’t understand what the document says.

So, what does it say? There is a reason the bank sent it to you, and I don’t know what that reason is. They have no obligation to notify beneficiaries until the assets are going to be transferred. Then there is a requirement in most states to notify beneficiaries within 60 days that they are a names party to a trust.

Step 1: read the documents

Actually this is in Maryland and the bank told me according to Maryland law, the beneficiaries do now legally have to get annual statements of the trust. I do not have the actual trust document though. Just a bank statement of the various investments. I will ask the bank if they can send me the actual trust document then. I’m not sure if it will be permitted if in his name but I can try.

Debby is admitted in Maryland too. She’s very knowledgeable. Worth a consult.

[Anonymous]

Read question 28 on the last page. https://www.simscampbell.law/wp-content/uploads/Revocable_Trusts_Maryland.pdf

It won’t let me paste it for some reason. The bank has no legal obligation to notify you until the trust becomes irrevocable in MD. So something happened. It’s worth requesting the full trust from the bank. I would start there.

[Anonymous]

Oh ok thank you, the title of the trust bank statement does have the word irrevocable in it so that make sense.

[Anonymous]

Great, that gives you the right to a copy of the trust. No need to hire a lawyer and spend $500 for this advice. Just write a letter to the bank and request the trust document. Then read it. Then see a lawyer if you have questions.

[Anonymous]

No one knows what your remainder beneficiary amount is until you see the trust documents. Of course it could be all. But it also could be $50k. So get the documents before you get too excited.