Re: Loophole in Trust laws ? I can hardly believe what I've learned

"Dave" <gasoline@xxxxxxxxxxxxx> wrote in message
news:QKjak.6299$CC.6256@xxxxxxxxxxxxxxxxxxxxxxxxx
Let's say someone creates a trust for some beneficiaries,
then appoints a trustee, then dies without ever telling the
beneficiaries that there is a trust for them.

So, the trustee never informs the beneficiaries
about the trust and simply reaps the rewards of its
asssets, the beneficiaries never being the wiser.

This is what happened to me. And I really must
wonder just how many other people it
might be happening to as we spea... er, as I type !


My Dad made a trust
for my brother and I and he relied on my brother to
tell me about it. But my brother never did tell me
about it It was created for us over 5 years ago
and I only recently found out about it
from a third party by virtue of a simple twist of fate.

Needless to say, I am planning to sue
to have my brother removed as the trustee.

Which brings up a question. I want to get a lawyer to
represent me since I live in an entirely different state from
where the trust exists. To further complicate matters,
the settlors lived in one county and the trustee lives
in another.

So, how can I find out which county in that other state
I should choose to look for counsel in ?

Thanks
Outraged and Disgruntled Dave.

Hire an attorney in the county where the trustee lives. That's not the only
proper jurisdiction for filing the lawsuit, but it is a safe choice and
saves you having to research the issue. If your attorney wants to file in
some other place, that attorney will decide that.

Don't try to get a copy of the trust before hiring the attorney. Getting
the copy is the attorney's job. Whether to wake up the trustee before
filing the suit is the attorney's decision. Just hire the attorney.

It is not uncommon for people to draft trusts and purposely refrain from
informing the beneficiaries. There are often reasons to keep the
beneficiaries blissfully uninformed. That is not a loophole. Also,
embezzlement by the trustee is not a loophole. If the trustor trusts the
trustee too much, that's the trustor's mistake. The trustor's attorney
should advice the trustor on this issue, but the attorney cannot inform the
beneficiaries if the client says not to. Some people instruct their
attorneys to inform the beneficiaries after the date of death of the trustor
that there is a trust. And finally, the most common practice is for the
trustor to inform the beneficiaries so that the trustee is not overly
tempted.

On the death of your father, you should have hired an attorney to file for
probate of the estate. Then you as executor would have tried to gather all
assets and would have found that some or all had been transferred to a
trustee. Then you would have sued the trustee and all would be well. So
let's divide the blame: Trustor 25%, you 25%, embezzler 50%, legal system
0%.

This answer must not be relied on as legal advice for the reasons posted
here: http://mcgyverdisclaimer.blogspot.com . And I am not your attorney.

McGyver


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