Background:
Trust created by grandmother, naming daughter as sole primary beneficiary and also sole trustee. 3 grandchildren secondary beneficiaries. Clause in trust states "I intend for the trust property to be held for the benefit of my grandchildren." Trust was drawn up by daughter's attorney.
Daughter has taken over part of the real estate for herself and it was just discovered she also mortgaged nearly the whole of the real estate for half a million dollars (reverse mortgage), without ever telling anyone. Information was found out by chance while checking registry of deeds.
The grandchildren were always told by the grandparents that the property was intended for them and the grandchildren even paid off a mortgage after the grandparents died, thinking they were the primary beneficiaries.
Has the daughter/trustee/beneficiary done anything wrong? Is there any possibility the grandchildren's rights in the trust property can be preserved in accordance with the grandparents' wishes?
Read Similar Questions
- cotesting a will
- Beneficiary as Trustee for MA Trust?
- Distribtion of assets of Revocable trust
- Beneficiary wants accounting of MA trust
- Beneficiary wants accounting of MA trust
- accounting of trust
- Grandparents Rights to visit grandchildren in MA
- Pooled trust and allowable expenditures.
- What are the trustee's reporting responsibilities to the beneficiaries of a revocable trust after the donor's death?
- Trustee refuses to send account information for trust
Recent Posts about Massachusetts Laws
| Forum | Last post |
|---|---|
|
I have a lease until June 2012, but I am very unhappy with my living situation, I pay half of the rent. I am a....
I cannot answer this question based upon your statement. Who are they....
|
2/8/2012 11:00 by Alexm2012 |
|
Is it legal for Massachusetts employer to send a SALARIED employee home for the day, without pay, for a dress ....
Federal and Massachusetts courts have upheld employee dress codes as l....
|
2/8/2012 09:09 by Munsterwoman |
|
Hi, I'm the grandmother of 4 beautiful grandchildren. The oldest has hit a rough spot with defiance (puberty ....
I'm very sorry about your situation and the ordeal your family is goin....
|
2/7/2012 23:02 by gramy |
|
Hello. I'm in the middle of an appeal for SSDI and my attorney asked me to get a residual functional capacity....
First, I guess it's not a good sign that you do not trust your current....
|
2/7/2012 08:18 by Adam13 |
|
Hi everybody.
I am trying to make an offer on a house, which is an estate sale. As I understand, the execut....
|
2/6/2012 13:50 by ilya980 |
|
I've been helping a friend pay for a lawyer to go to probate court.
Her ex-Boyfriend, whom she is taking to c....
|
2/6/2012 12:21 by rbiddle |
|
If I witness a person getting beat up at a party and just run away without calling the cops or helping the guy....
I don't think so. In terms of civil liability (as opposed to cri....
|
2/3/2012 07:17 by Coller |
|
My father passed away in September. The probate is over and settled, no contests to the will. My mother is the....
Your dad died in September and the probate is already settled – ....
|
2/2/2012 18:50 by JGraul |
|
Hi. My cousin is charged with possession with intent to distribute drugs in a Massachusetts court. He is not a....
Unfortunately for your cousin, if an immigrant is convicted of certain....
|
2/2/2012 08:07 by Sister6 |
|
Just curious if you have any thoughts or have read any information regarding the success rate of divorce media....
Yes, I've also seen the 90% estimate on various websites, with some me....
|
1/24/2012 11:47 by RRM |
|
Several of my colleagues will dictate consultation notes in which they state they don't have the complete hist....
The question probably boils down to whether or not such practice is wi....
|
10/2/2011 18:37 by Anonymous |
Revocable Trust/Sole Trustee is Sole Beneficiary
This situation is so dependent on the wording of the trust that it is really impossible to answer without reviewing the trust document. You describe the daughter as the "sole primary beneficiary", but then indicate that the trust was established for the benefit the grandchildren. That language is not necessarily inconsistent - my guess is that your are reading from different areas of the trust. Your grandmother most likely had a different set of objectives for when daughter was living and when daughter was not living.
You need to look at the provisions of the trust controlling the distributions of trust principal and income during the life of the daughter. The court will look at that language when determining whether the daughter exceeded her authority (as trustee). My guess is that you will find the trustee is given somewhat broad authority to make distributions of income and principal to or for the benefit of the daughter. If the daughter was authorized to act as she did, then there would be no recovery available. If the daughter did not have the authority to act as she did, then the remainder beneficiaries have the right to seek redress in court - which can include her removal as trustee and her having to reimburse the trust. This is really a very tricky area, and I would encourage you to consult with a qualified attorney before you irreparably damage family relations.
Attorney Peter Bernardin