Legal Question in Wills and Trusts in Illinois

My uncle passed away recently and left his estate in a trust. Some in my cousin's family have vowed to get our family out of the trust.

After my uncle died the trust was assigned an EIN number and this cousin is listed as the trustee and grantor with the IRS. Now a large amount of money (1.4 million) in a Merrill Lynch account is about to be transferred from the account with my uncle's SSN to a newly set up Merrill Lynch account with the EIN number. Since my cousin is the grantor of the trust under the new EIN number, could she remove money from the trust, change the beneficiaries, or alter my uncle's trust in any way?

Thank you very much!


Asked on 4/30/11, 5:18 pm

2 Answers from Attorneys

Sanford M. Martin Sanford M. Martin, P.A.

Based on the facts provided in your inquiry, the important legal issue involves the fiduciary responsibility of the trustee to pay the expenses of the estate, to manage the assets of the estate, and to distribute the residual estate to the beneficiaries strictly according to the wishes of your uncle expressed in the trust. An EIN number for the trust is standard. The trustee has no legal right to alter the beneficiaries, misuse trust funds, fail to pay just debts and expenses, or to distribute estate property differently than specified in the trust. Finally, the trustee must account for estate funds in a final accounting report detailing use of such estate funds, all of which is subject to review by interested persons such as beneficiaries. You or other such interested persons may object to or contest trustee's actions or accounting report in probate court. For complicated issues of significant value, consulting with an experienced lawyer is suggested.

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Answered on 4/30/11, 5:47 pm
Jeffrey R. Gottlieb Law Offices of Jeffrey R. Gottlieb, LLC

The trustee has a duty to follow the terms of the trust. Beneficiaries are entitled to see the trust document. If the trustee breaches his duty, he can be held liable. If you fear that the trustee will not properly perform his duties, you might want to consider hiring an attorney to help protect your interests.

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Answered on 4/30/11, 5:54 pm


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