Reply to Special Needs Trust out of money?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]OP is your husband and or the other sibling listed as secondary beneficiaries? Usually a SNT stipulates who the beneficiaries are or that the trust goes to the estate and heirs of the creator upon the death of the SN beneficiary.

The uncle has either already taken the money or has been moving it into his accounts and businesses.

If the siblings are secondary beneficiaries then you have legal standing. Annual updates and accounting of trust assets and spend is a basic fiduciary responsibility. A lawyer will start there compelling the uncle to provide accounting. If he still refuses, the court can compel bank statements so you can see where the money went. [/quote] OP here. Yes, the other two siblings do receive the trust assets upon the death of the beneficiary, according to the trust document. Do people take this angle (claim a legal interest and thus have greater access) when the beneficiary is still alive? I’d think the siblings would feel greedy asking where the money went that they would not be entitled to unless their brother died. Yes, I am asking this, but more from concern for the beneficiary right now.

The lawyer who put the will and the SNT together is deceased. The whole estate was not put in a trust apart from the 1/3 share in the SNT, so it had to be probated and it cost a lot in estate taxes, etc. at the time. Incompetence from the start.

The SSDI is like $200 a month and is based on his very short (teens-early 20s) work history in low wage jobs.[/quote]

With the additional information, I do agree that the money went really fast. With regard to an accounting, only beneficiaries (or legal guardians of beneficiaries) have standing to request an accounting. That would seem to include the brothers. Also some states require periodic accountings.

Here’s your problem. In your first post you say the accounting was denied. You don’t say by whom or why. Regardless, if that’s the case, you’re going to need lawyers which you say you don’t have the money for.

There may be a means to get an attorney to take the case on a pro bono basis. But honestly this isn’t one I’d likely consider unless there is objective reason to believe that the uncle embezzled the money, such as significant lifestyle changes. Even if you win (and it could be protracted and expensive litigation, which the trust may be required to pay for the trustees legal expenses), you aren’t likely to gain any tangible benefit. Pro bono resources are scarce and reserved for where you can do actual good.

Second, even if there were some bad decisions, unless the trustee has money to cover any judgment (which will require expensive litigation), there’s probably no point in pursuing now. The time to pursue was earlier when you could have tried to remove the trustee and preserve trust assets. [/quote]

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