How do you break a trust?
My grandfather passed away Dec. 2002. He has assets of about 300,000 in various forms. He left a trust agreement stating that a bank has control over the money until my mother and uncle passes away, they are in their 60's. The bank will charge a large fee for the money each year until then. At the time of their death my brother sister and I will recieve the money. I am wondering if there is a way that we can sign over the trust to my mother and uncle so the money can be used now. If we don't the fee charged will use most of the money.
1 Answer from Attorneys
Re: How do you break a trust?
without seeing the actual trust documents, I cannot tell you whether you have an interest such that you could conclusively sign it to the life beneficaries (Mother and Uncle). Teh same is true of your siblings. However, based upon the information you provided, it looks like you could do that.
I do not understand what late fees the bank is charging. Do you mean trustee's fees? That is where they are getting paid to administer teh trust. If that is so, they have a duty to make the money productive. That is, they have to make it grow. A good bank trust department should bable to at least cover their fees, even in a declining economy.