Needing some legal advice on Trusts - I am trustee

[Tidybuoy]

I'm hoping that someone here can give me some advice on a Trust that I have recently become trustee. I'm going to speak with the lawyer who wrote up this trust & will but I want to do my own homework before our meeting. I'm a little concerned because family members who were not included in this will are suddenly coming forward and this is making me a little nervous.

1) I am not the actual trustee but the "backup/alternate" trustee. The actual trust document lists the trustees as "first and second" and I am second.
2) Niece of trustor (who died) is trustee. Neice will receive all of the estate, after her mother passes away. For now, the will states that all income from the trust will go to Nieces mother (trustor's sister).

3) Trustor had about 10 bank accounts or investment accounts. Only about 60% were previously transferred into the trust.
4) Niece is telling me that remaining 40% is to be distributed directly to individual accounts benefactors (which could be herself).
5) Trust document states "The "trust estate" consists of the property, plus any proceeds and undistributed income of the property, previously transferred to the Trust, and any property hereafter transferred to the Trust by the Trustor, her Will, her attorney-in-fact or conservator".
6) does #5 mean that all accounts (previously transferred or not) should be transferred to the trust?
7) Will states: "I give all of my estate to the Trustee then in office of the Trust identified below, to be held and administered by the Trustee according to the terms and conditions of that trust."

Lastly, there is one setenance in the Trust that I don't understand the meaning: On death of xxxxx, all of the rest, residue and remainder of trust estate shall be distributed to Trustor's neice, xxxx, if then surviving, if not surviving, to her issue by right of representation. Not sure what "to her issue by right of representation" means but I'm assuming it means her heirs or as instructed by her own will.

Any advice would be appreciated.

[911SauCy]

I'm half a cigar and glass of Patron in...can't help.

[McLovin]

I have some familiarity with trusts, but am not an expert (for sure) and would like to hear what an expert says!

But, it seems:

1) Since you are only the backup trustee, and the niece is alive and able to serve as the trustee, you have no role in the administration of the estate. I.e., as far as serving as a trustee, you are at this time powerless.

2) I believe "by right of representation" basically means that if the niece has several children ("issue"), the property goes to them in equal shares.

3) On your #3, 4 and 5, that's interesting. I think generally when trusts are set up, in addition to the trust, there is a thing called a "pour over" will. That will says that all assets that are not parts of the trust at the time of death (like the 40% of the bank accounts) are willed to the Trust.

If there is a pour over will in place, then I think the answer to your question re the accounts is "yes," those 40% accounts should be transferred to the Trust, per the directions of the will. I believe that is what your #7 is - that's the pour over language. If that's the case, then what the niece is saying in your #4 ("that remaining 40% is to be distributed directly to individual accounts benefactors") is incorrect. That money should not go to the individuals, it should go into the trust, at which point it would be treated like the other 60% of the accounts.

[Tidybuoy]

Thanks,

I have the same opinion as you at this point but I am going to get this confirmed by the attorney who wrote the will and trust.

My primary concern is that this estate was left to 3 people and a few relatives were left out. The woman who died confided in my that she intended to leave certain people out of the will simply because she hadn't heard from them in years. Now I have voicemail that I have not returned, questoning about the will. I think it should be the attorney who is answering these questions and not me.

The niece has told me not to let any of the relatives in the house. This kind of puts me on the spot here and I don't like being in this position. in addition, the relatives that were left out are police officers (not that I don't trust them but they do carry guns).

My plan is to simply notify the attorney of the death and let him deal with it. I just wanted to understand for myself before I talk to him. The other thing is...the niece is not healty and is over 65. She only has one kid who is 13. the trust states that if the niece were unable to act as trustee, then I would fill in and nothing is distributed to any kids until age 25 - so, this could affect me at some point.

Lastly, I am also interested due to me being one of the beneficiaries of the will. Not cash, but the woman left me a large amount of artwork, which is currently owned by the trust.

[john70t]

(Not a lawyer but)
1). You are alternate trustee and have no legal say.

2). #7 seems to place Trustor's confidence of administration in niece, and a controlling clause.

3). #5 seems to instruct "any proceeds and undistributed income of the property" be included, which would go to niece's mother. Her age and mental competency might be a factor.
Niece is still trustee, and wanting to distribute the 40%.

4). This might be challenged by the relatives due to claim of non-impartiality....but if no spouse children or other siblings, then other relatives would be the next tier, I'd guess.
The will seems t specify the Trustor's wishes there.

Interesting situation. Pimp hand the attorney please.

[MauleM5-235]

I am a lawyer and practice in Oregon and Washington. For several years I served as the Trustee for approx 100 Irrevocable Life Insurance Trusts involving complex life insurance transactions.

I may be able to give you some useful information. Feel free to call me at work - 503-914-6381.

Mark Potter

[Rot 911]

As pointed out. You are the alternate trustee should the primary trustee die or become incapaciatated. This apparently is not the case. Unless you are also named to receive something in the trust you have no standing to say or do anything.

[Tidybuoy]

Originally Posted by Rot 911

As pointed out. You are the alternate trustee should the primary trustee die or become incapaciatated. This apparently is not the case. Unless you are also named to receive something in the trust you have no standing to say or do anything.

I am a named beneficiary in this trust. However, not for any cash, just personal property (albeit somewhat valuable). I'm only a little nervous because the niece has been letting people into the home and these are people that were excluded from the will. I don't like sounding anxious or greedy and I can wait as long as it takes but it makes me nervous when people who could care less for many, many years, are suddenly interested in their rich auntie. I was good friends with the deceased for the last 30 years and I took care of her for the past 5. If she knew who was sight-seeing thru her home, she'd be furious.

[Scooter]

Send me a PM with your phone number and I will give you a call. I may be able to help you clear up some things.