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Question

If the beneficary of a trust reaches a dire financial circumstance, i.e. needing monies to pay for certain repairs to her home under contract to sell, could she expect her legal trust to sell some stock, etc. to get those monies. The trust is her sole avenue of income; she is dependent on the house sale monies to pay off debt and purchase a unit in a retirement home. She has recently suffered from two strokes & must get out of her home

Submitted: 19 days and 23 hours ago.
Category: Legal
Value: $38
Status: CLOSED
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Posted by SmallTownLawyer 19 days and 23 hours ago.

Info Request

Hello -

Thank you for contacting JustAnswer.

I would be happy to assist you, but need some clarification?

1. What are the terms of the trust?
2. How often and what amounts are paid?
3. Are there any other conditions?

Thanks,

Michael

19 days and 23 hours ago.

Reply

The trust was establised by her parents many yrs. ago...this is a woman in her early seventies...only the interest, not the principal was to be used...it is more than likely that the principal has been invaded...however, as of this fall, her monthly allowance was cut from 8,000 to 3,000...after her death, the beneficiay is to be her only child....(the trust owner has been a single parent for 40 years)....her daughter as "some rights"...b elieve she has or could have a financial power...perhaps this means declaring the mother incompetent ?...?? also know that she has "a note from the law firm ???) having "borowwed" 20,000 to get her house ready to put on the market...she sold her home in 3 wks! this is just another sum that needs to be paid out of house sale proceeds & it is very likely that there will not be enough monies from the sale to pay all these outstanding debts...mortgage, etc.

 

Posted by SmallTownLawyer 19 days and 22 hours ago.

Answer

Thanks for your response.

The language of the trust itself will control as to what money can be used for getting the house ready to sell. The trustee is obligated to carry out the letter of the trust as it is stated. I know many trusts have a provision that allows the trustee to disperse funds "as necessary" for living expenses and emergency situations such as these. You will need to look at the trust itself to find out if the trustee is allowed to disperse funds in this manner.

Hope this helps,

If my answer was helpful, please click ACCEPT so i may be compensated for my time. If you are not satisfied with the Answer, please feel free not to Accept, and post a follow up question so I may be able to clarify my Answer. My goal is to provide an outstanding Answer, so give me a chance.

Regards,

Michael

19 days and 22 hours ago.

Reply

I have no doubt that the trust as many are, is loosely written to allow for more than one interpretation. so would you give me examples of questions that could be asked to get at the crux here...can they, not would they, disperse monies...i.e. just sell some securites...there are funds and stocks in the trust...it seems to me that is the owner asks this to be done, it should be able to be accomplished. Granted, the principal here has not been prudent w/her monies but her parents were trusted friends of this firm and set this out to protect her. And, as you might expect, the grandchildren are about to inherit an untenable situation which they cannot afford. Thanks...

 

Accepted Answer

Thanks for your response.

I'm not sure what you mean by "questions that coudl be asked to get at the crux". To find out if the money can be dispursed, you need to look at the trust itself. The language of the trust will either provide a clause that allows the trustee to dispurse money in situations such as this, or it won't. If the trust is written to allow it, speak to the trustee and let them know of the situation. You may have to submit your request in writing. If the trust does not allow this, and ony allows dispursement of the interest payments and none other, you will be out of luck.

Hope this helps,

If my answer was helpful, please click ACCEPT so i may be compensated for my time. If you are not satisfied with the Answer, please feel free not to Accept, and post a follow up question so I may be able to clarify my Answer. My goal is to provide an outstanding Answer, so give me a chance.

Regards,

Michael

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Expert: SmallTownLawyer
Pos. Feedback: 98.9 %
Accepts: 
Answered: 11/2/2009

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Licensed Missisippi Attorney; Criminal Law, Family Law, Personal Injury, and Civil Defense

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