Reply to Do you know how much is in the family trust?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]PP here. Is that weird that my parents have me pay the annual fee for a trust that’s unclear if it’s funded? I have 3+ kids (only sibling with children) and it’s kind of a pain to write this check every year. I’m like putting my own questionable inheritance on layaway [/quote]

I am the family coordinator for about the ten trusts in my extended family and a layer, though not a trust and estate lawyer, and I have no idea what you are talking about. [/quote]

That’s fair. I’m confused myself. Do the extended family members pay an annual fee into their respective trusts that they are beneficiaries of?[/quote]

Np. I’m a trustee on a trust and I’m also confused. I get a set amount each year to be the administrator and that is paid by the trust, from the trusts bank account. No, the beneficiaries don’t pay.

Also, I’m required to provide an annual accounting to the beneficiaries detailing beginning/ending balances of investments and any expenses.

I truly have no idea what you are paying. [/quote]

Yep. this is standard.  As a beneficiary you have the right to ask for a yearly accounting.  They might have funded a minimal amount to have it ready to go.   And you should have a copy of the actual trust and actually read it.  I’ve never heard of a beneficiary paying yearly administrative expenses.

Stop paying it without getting your questions answered.  Who do you make the check to?[/quote]

PP here writing the annual fee to the trust company. My dad owns a business and set up a series of trusts. He said one day some big deal would fully find it and pay $1MM into the trust, which today sits at $0 according to the annual statement I receive. I receive an invoice from the trustee firm each summer showing I owe $600 for the management fee. So far I’ve paid $6,000. I’m so confused. [/quote]

I think your dad may be scamming you. I’m sorry. My dad and uncle scammed me when I was 16, after I’d been working for a few years. The greatest lesson was that I learned all about finances and investing in HS because I didn’t want to end up like that again.

My dad died with a trust that only had his house in it, and maybe a few assets. But, it was poorly written, since my dad was terrible with $$, obvs. He also married a scammer.

We set up a family trust that feeds into trusts we set up for the kids. They’re in college, and while we had a family meeting with our lawyer, we didn’t disclose the amounts. We will later, but it will be $5-10M each. [/quote]

Nice humble brag.  But 5-10 million is such a big range that I smell bullshit.[/quote]

Different poster here but it's not bullshit. We are 100% in stocks and obviously cannot tell our kids what they're going to inherit - it depends on stock market fluctuations. Right now there's ~15M in the portfolio and I'm in my 40s. Unless there's a major financial catastrophe or I die very soon... they might inherit much more, individually, than what's currently in there, just through market gains. 25 years ago this portfolio was worth very little! The market has been incredible for high tech in recent decades and I don't see it slow down any time soon. We have explained this to our children, and so they know that they cannot rely on a specific sum. They still need to attend college, start a career, work steadily and invest their own money. And then they'll see.
 
So perhaps all the old people with trusts aren't divulging what's in it because by the time their adult kids inherit it might change. I think they should still be transparent about current sums, but the older generation has perhaps more taboos surrounding money than mine.

[/quote]

I think it’s really odd and a big mistake for you to tell your young kids that you have that kind of money.  It’s sad, really.  You honestly think you can just “explain” the market to kids that young and that knowing they have that much money isn’t going to affect them and how they view their peers etc?  It’s just so completely unnecessary and potentially counterproductive.  We had plenty of money when our kids were younger and never dreamed of sharing it with them.  What exactly is to be gained?  [/quote]

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