Legal Question in Wills and Trusts in California

Trust Violations

Last August 1998 a trustee established an irrevocable charitable remainder unitrust for my benefit. My real estate property that I had owned for over 15 years was put into the trust. My trustee in collusion with his attorney brother placed loans against my property. One of the loans went to the trustee's management company for a stock purchase. Now I am unable to repay the loans and the attorney brother is going to foreclose on my properties. The loans are interest only with tremendous fees which I feel may be against California usury laws. The attorney had most of the loans put in his wife's maiden name but the last loan was directly to the attorney. Is this trustee, brother-attorney relationship legal to strip my trust of the equity I had saved for 15 years?


Asked on 4/29/99, 1:24 pm

3 Answers from Attorneys
MICHAEL MILNES Law Office of Michael A. Milnes

Re: Trust Violations

What you describe sounds like you have been taken advantage of. The Trustee is a fgiduciary and must look out for your best interests. There also may be self dealing which could adversely affect the viability and taxation of the charitable trust. You need to get to an experienced attorney in trust litigation promptly.

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Answered on 5/03/99, 3:52 pm
WILLIAM BRANDWEIN WILLIAM A. BRANDWEIN, A PROFESSIONAL LAW CORP.

Re: Trust Violations

What you describe is the most bizarre treatment that I can imagine. The attorney is violating all ethical standards and is subject to all kinds of disciplinary proceedings. The trustee has violated his fiduciary obligations to you. I wouldn't waste a minute! Get an attorney to file an action in the county whichis the situs of the trust and get going to restore you to your rightful ownership.

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Answered on 5/03/99, 5:45 pm
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: Trust Violations

I'm having trouble following the events you describe, but what I do understand concerning the trustee's and attorney's actions does not sound ethical and perhaps not legal, and certainly not in your interest. You need to see a trust litigation attorney immediately.

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Answered on 5/04/99, 9:37 pm


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