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?
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