Estate Law Questions? Ask an Estate Lawyer.
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You absolutely have rights here against your sister and her actions. The trust and its assets are not the personal piggy bank of your sister just because she's the trustee. Rather, the trustee is obligated to timely administer the trust specifically pursuant to the terms of the trust. In addition, the trustee’s fiduciary duty to each beneficiary requires that the trustee provide each beneficiary a full inventory of trust assets and periodic accounting of every dime in and out of the trust. Failure to do so is a breach of the trustee’s fiduciary duty to the grantor of the trust and to the beneficiaries. Such a breach gives the beneficiaries cause to ask the trustee to resign and if the trustee refuses to do so, gives the beneficiaries the right to file a petition with the family court asking the court to order the trustee removed. And, if there has been any misappropriation of trust assets, the beneficiaries can also ask the court to award actual and punitive damages against the trustee.
n your situation, I would put her on written notice by certified letter of the foregoing and let her know if she does not satisfy her fiduciary duty to you as a beneficiary in the administration of the estate/trust, you will be filing the petition with the court to have her removed as trustee and be asking the court to order an audit of the estate/trust.
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