An elder couple creates an inter vivos trust with a situs in Texas.
They name themselves original Trustees and primary Beneficiaries
They name their five issue beneficiaries with HEMS considerations second only to the Grantors themselves.
Dad dies and as the second Grantor weakens two of the issue, working with Mom’s atty, secretly seize control of the trust claiming to be trustees and spending trust money like it was their personal piggy bank. When Mom dies they refuse to answer or account to the others.
One of the disenfranchised files a breach of fiduciary suit in the general state court as a beneficiary seeking accounting and disclosures.
A second disenfranchised then files suit in state probate
court as executor of the “Estates
” raisng the same claims as the first suit.
Both Grantors have pour over
wills naming the trust as the only heir
Who is the real party in interest, the beneficiary of an heir-in-fact trust or the executor of the estate?