time frame

[kierra]

What is the name of your state? CA
My grandpa had a trust set up to give my brother and I 1/4 percent of his estate. I dont know if the house was part of that, my father wont give me a copy of the trust. He died in April this year and named my dad the successor trustee. Would My dad have to sell the house to fairly distribute the money? My dad wants to set up a trust for my brother and I and put everything in it. Can he do that without giving us what my grandpa intended us to have? How long can he hold on to everything? There is also a bunch of stocks and bond involved and I feel i want to be incharge of my shares. Is there a time frame he needs to complete transactions? Is there a time frame for him to file taxes for the house?

 

[Dandy Don]

What are the ages of you and your brother?

A lot may depend on what the trust says--if it mentions how the house should be handled, if it should be sold or not. If it doesn't say anything about how the house is handled, then your father as trustee has the authority to decide whether it is sold or not?

DANDY DON IN OKLAHOMA (tiekh@yahoo.com)

 

[kierra]

Time Frame

We are 29 and 33.

 

[Dandy Don]

My apologies for assuming you may have been minors.

You have the right to send your dad a certified letter to ask him for a copy of the trust and accounting information showing what the trust is worth. If you don't think he would cooperate, then get a trust or probate lawyer to request that information on your behalf.

He does have a little bit of leeway to handle the trust transactions but you should be able to receive what you are entitled to within 6 months to 1 year.

DANDY DON IN OKLAHOMA (tiekh@yahoo.com)

 

[kierra]

I thank you for your time and info. Very much appreciated!
One more Question. Does my dad have a time frame to report inheritance and do we both have to pay the taxes on it? if so are there penalties If he takes to long? Would I be held responsible in any way for his delinquncey?
Thanks again

 

[mkawahara]

Get the trust documents

In CA, Probate Code 16061.7 states that you are entitled, upon reasonable request to the trustee, to receive from the trustee a true and complete copy of the terms of the trust.

You also have the right to be given a full accounting of the estate upon reasonable request to the trustee.

Assuming the estate is in CA, that is.

There's no real need to file a trust with the probate court or inform IRS about it. Usually a properly set up trust will not be subject to estate taxes. And as long as administration progresses in good faith and in a reasonable time, it's all good. But, the terms of the trust must be followed. Your dad must give you exactly what your grandfather says you get. No trust fund for you instead; exactly what the trust says. My dad first set up his living trust to give me stuff outright. Then as my life changed, he changed his living trust to set up a trust fund for me. That's legal (and it works great for me - God Bless him). But the sucessor trustee cannot do that unless the trust tells him to.

You would need to look at the trust documents to decide what's right.

I'd first look at this site:
http://www.leginfo.ca.gov

Check the "probate code" box then type "16060" in the seach box. Read the page that starts "The trustee has a duty to keep the beneficiaries of the trust reasonably informed of the trust and its administration." Print it and send it to your dad with a letter requesting the documents and notification per 16061.7. At least call him and tell him you are sending "something I found on the web".

Since your dad is successor trustee, he is a "fiduciary" and is strictly liable for any mistakes or intentional acts that cause harm. You would be in the clear if he screws up.

Personally, I think that your dad needs to seek counsel to help administer the trust.

I'd get your dad to enlist the help of a good attorney who knows the trust administration process. It's too late for him to do it on his own now as he may have violated at least one law by not giving you a copy of the trust when you asked. He's got an opportunity to correct his mistakes, though.

Otherwise, you'd have to hire your own attorney to tell him to straighten up and fly right. And you don't want that. I had to do that with my successor trustee. Ugly. Really, really ugly.

When you do receive the trust documents, see an attorney and have him explain it to you; don't sic him on your dad, just ask him to talk to you. Then you can help your dad with the administration rather than fight him. Hell, you can still ask your dad to set up a trust for you after the estate is distributed. It can be a good thing.

But ask your lawyer first...

 

[Dandy Don]

There is no definite answer to your question--there is no time limit for him to follow, because it may take a few months to get the bonds/stocks and other non-cash assets cashed, so as trustee he can basically take as long as he wants before making the distribution. That is why you need to get a copy of the trust and the accounting information so you can see exactly what assets are there and then be able to ask him specific questions about how they have been handled.