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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 115464
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I need a beneficiary lawyer regarding a trust. and not

Customer Question

I need a beneficiary lawyer regarding a trust. and not Barrister.
Submitted: 4 months ago.
Category: Legal
Expert:  Law Educator, Esq. replied 4 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
What is your question for us?
Customer: replied 4 months ago.
My ex sister in law is the trustee for my son. And she recently moved the trust from a blue chip Morgan stanley a world renoun investment firm to some state trust fund bank in PA. It was like taking a rolls royce company that his father set up and had a relationship with for 20 years and downgraded. Then I asked her is this more cost effective and she said yes it was and I said well show me the numbers for my son. and its been four months and she hasn't shown me. I keep asking and she will not provide. Plus she is very hostile towards me and calls me vindictive and says i make this about myself and such when I don't get anything from the trust I am merely trying to hellp my son and protect him. I want her to resign do I have enough?
Customer: replied 4 months ago.
hello?
Customer: replied 4 months ago.
my son is a minor. he is 15
Expert:  Law Educator, Esq. replied 4 months ago.
Thank you for your reply. Sorry for the delay, as you know we are working with multiple customers at one time and they all deserve the same time as you deserve. I appreciate your patience.
Legally, the trustee has all power and control over the administration of the trust. This means they have the right to make moves that they believe are a reasonable business move for the trust, it does not have to even be the best move, just reasonable. The trustee legally does not have to justify the decisions to move or change investments to a beneficiary. The trustee is only obligated to follow what is written in the trust and if an accounting is not waived by the trust to provide the beneficiary with an annual accounting of the trust.
Legally, you cannot force her to justify the moving of assets in her management of the trust, so it would be not sufficient to remove her unless you can prove that the move was not a reasonable business decision (which is a very broad and vague legal term). A reasonable business decision would in this case be one that any reasonable trustee could make, even if it is not the smartest decision.
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Customer: replied 4 months ago.
what your response is alot different then someone elses that I got. I tested this and you have complete oppositie of what another attoney on here said. What is the f**king law. I can tell you what a 30 year lawyer expereince lawyer said, ..
Customer: replied 4 months ago.
don't give legal advice if it isn't correct. or coincides. Other attorney had said she didn't place like with like and she didn't move it for any valid reason. She just moved it because she said she didn't feel like doing the administrative duites anymore and that she wanted a co-trustee...the other bank was a co trustee and she won't communicate with the beneificiay which is me.
Customer: replied 4 months ago.
I am guiardian of beneificiary and have rights to protect the beneificiarys rights. Don't take my question if you know nothing about beneficiary's rights. which I asked for
Expert:  Law Educator, Esq. replied 4 months ago.

Thank you for your reply. I would thank you for refraining from using vulgar language. You asked for the law, here is the law and it does not say "I have rights to protect the beneficiary's rights" it says exactly what I said above. 3B:31-62. Powers to Direct Investment Functions. a. When one or more persons are given authority by the terms of a governing instrument to direct, consent to or disapprove a fiduciary's actual or proposed investment decisions, such persons shall be considered to be investment advisers and fiduciaries when exercising such authority unless the governing instrument otherwise provides. b. If a governing instrument provides that a fiduciary is to follow the direction of an investment adviser, and the fiduciary acts in accordance with such a direction, then except in cases of willful misconduct or gross negligence on the part of the fiduciary so directed, the fiduciary shall not be liable for any loss resulting directly or indirectly from any such act. c. If a governing instrument provides that a fiduciary is to make decisions with the consent of an investment adviser, then except in cases of willful misconduct or gross negligence on the part of the fiduciary, the fiduciary shall not be liable for any loss resulting directly or indirectly from any act taken or omitted as a result of such investment adviser's failure to provide such consent after having been requested to do so by the fiduciary. d. For purposes of this section, "investment decision" means with respect to any investment, the retention, purchase, sale, exchange, tender or other transaction affecting the ownership thereof or rights therein and with respect to nonpublicly traded investments, the valuation thereof, and an adviser with authority with respect to such decisions is an investment adviser. e. Whenever a governing instrument provides that a fiduciary is to follow the direction of an investment adviser with respect to investment decisions, then, except to the extent that the governing instrument provides otherwise, the fiduciary shall have no duty to: (1) Monitor the conduct of the investment adviser; (2) Provide advice to the investment adviser or consult with the investment adviser; or (3) Communicate with or warn or apprise any beneficiary or third party concerning instances in which the fiduciary would or might have exercised the fiduciary's own discretion in a manner different from the manner directed by the investment adviser. Absent clear and convincing evidence to the contrary, the actions of the fiduciary pertaining to matters within the scope of the investment adviser's authority, such as confirming that the investment adviser's directions have been carried out and recording and reporting actions taken at the investment adviser's direction, shall be presumed to be administrative actions taken by the fiduciary solely to allow the fiduciary to perform those duties assigned to the fiduciary under the governing instrument. Such administrative actions shall not be deemed to constitute an undertaking by the fiduciary to monitor the investment adviser or otherwise participate in actions within the scope of the investment adviser's authority.

Unless you prove, as I said above, the move was negligent, meaning not a reasonable business decision, just because she moved the money to somewhere else is not ground to remove her. Also, the law does not say she has to justify the move to the beneficiary. So whatever some other lawyer on her told you, I disagree because of what the statute above states.

FURTHERMORE, just because someone tells you what you do not like to hear and another attorney here told you just what you wanted to hear does not make the attorney who told you what you wanted to hear right and the one telling you what you dislike wrong to the point where you should personally attack and curse them. I did not make up the above statute and you can see it right there where it says she has the right to make the move and it does not say she has to give you proof of why she made the move, the NJ legislature wrote that not me.

Customer: replied 4 months ago.
They don't have to justify how can that be? So you can move a trust just because...you have to admit that doesn't sound right? I don't see how its possible. because then she can move it from state to state and banker to banker when ever she wants so I don't understand that at all
Customer: replied 4 months ago.
I think you have to have a valid reason. You can't move it just cause you feel like it. That is abuse of power. If commissions are low and so forth is a reason. I mean maybe she won't resign but don't you have to have a valid reason. Where are you speaking from I put in a NJ zip code
Expert:  Law Educator, Esq. replied 4 months ago.

Thank you for your reply.

I copied and pasted the whole law because I wanted you to read it for yourself. NOWHERE in the law does it say they need a valid reason or need to justify the move, even though you think they should, the law does not say that. The law I gave you is the NJ statute, I am well aware you are in NJ.

Read the law I provided to you, that is exactly it word for word, yes she can move it from account to account or investment firm to investment firm if she believes it is a reasonable business decision to do so.

All the beneficiary is entitled to (again unless the trust document says it is not required) is to provide the beneficiary an annual accounting of the trust. If her move causes the trust significant loss (not that the trust did not earn as much one place as it could another place but significantly lost money when it would have made money in another place), then the beneficiary can challenge the decision of the trustee as not being a reasonably prudent business decision breaching the trustee's duty to protect the trust and if it is proven that the trustee was negligent in making the move, you can remove the trustee at that point for breach of fiduciary duty to the trust.