Trustees: Who can you trust?

Early in my legal career I represented two young women in their
early 20’s

His mother had died in a car accident when they were
infants An out-of-court settlement had been reached and
a lump sum in cash had been awarded to each of them.

Since they were “minor” (too young to have legal capacity to
act for themselves) the money was given to his father “in trust”
which will be held until they reach the age of 18.

The reason they had been sent to me was because they had
they both turned 18 and had asked their father for their money.
He had ignored her requests.

They hired me to get their money.

Easier said than done. His father hired a questionable lawyer
reputed to have thrown every hurdle in the book, hoping to make
we go

We eventually learned why. His money was gone.

Their father had spent the girls’ money… some on personal lives.
expenses, some on vacation. He had even given some of the money.
to a friend for a business that had failed.

His father was broke. There was no bond (insurance held by a trustee)
shares) and no money.

I forwarded the case to the district attorney’s office for criminal prosecution and
last I heard was a plea deal that included a requirement
who works to earn the money to pay them back.

The moral of the story? Who can you trust?

When you set up any type of trust, a living trust, an irrevocable trust
trust, a charitable trust, any kind of trust, how will you be safe
act honestly and ethically?

One way is to require a bond. However, you will often see in the
pre-prepared “forms” or “kits” that the bond requirement
It is removed.

It is often advisable to supplement two or sometimes three trustees so that
they can keep an eye on others. But then the drawback is that
you have a trust that is managed by a committee.

There is no easy answer. The answer depends on your particular
circumstances.

How much are you worth?

What kind of assets do you own?

How complicated will the management be?

Will there be management during his lifetime?

What other obligations does the person you have named have?
(are they raising a young family?).

Even in the case of the two girls, the father had a
obligation to render accounts to the court showing what he had
made with the money. He never did and no one was around.
to make him

Therefore, do not take the appointment of a trustee lightly. he spoke
with your family and your lawyer. And be sure to check your
document every few years. Family circumstances may have changed
where someone no longer has time to intervene if he is
necessary.

Good luck and until next time,

phil craig

PS Feel free to forward this to your friends.