question re trusts

**vsjhoc** · 03-06-2007, 02:41 PM

Red flag.

The trustee has a legal obligation to report all info to the beneficiaries (including DH). What is the total amount invested? How/where is it invested? How does the trustee make its investment decisions? Are all profits paid out or are some reinvested? I would contact the trustee and demand some concrete answers. Are the other beneficiaries in the dark also?

As for net worth, there are a lot of threads on this board about how you calculate it, although I don't specifically remember any posts about interest in a trust. There was mostly difference of opinion about whether you include your car or not, LOL. You could consider the income received from the trust as retirement income that is part of your net worth. You could consider the total value of DH's share as an asset that is part of your net worth. It depends on the purpose for which you are calculating your net worth.

I suggest you contact an accountant, because income from the trust may be taxable in a complicated way.

BTW, does the trust provide clear direction about what happens to DH's share when DH is, uhhhh, no longer here?

**crabbypatty** · 03-06-2007, 03:02 PM

Hmmm. I've been filing evrything since 1999 and the only paperwork we get is an annual letter just stating the total share at the time. i.e a few lines sayiong "your share is xxxx.xx. Are you saying that he should get the same type of annual statement like you get with your investments? He tells me that he never got any paperwork.

The trustee is another family member. So questioning it makes it complicated. Especially given that I am not the beneficiary, DH is, and he doesn't want to start trouble with family. The next time we see the trustee maybe we can start a conversation about it. "Hey we're interested in startng something for our own children, we're unclear how it works, can you explain it to us"

**vsjhoc** · 03-06-2007, 03:14 PM

Patty - Yes, I think you need to know more. The trustee has an obligation to hold or invest the funds to benefit the beneficiaries. You won't know if the funds are being invested poorly or even squandered unless the trustee provides regular detailed statements. I don't know how much $ is involved, but it wouldn't be unreasonable to get a quarterly or even monthly statement.

I see how it's difficult to broach this because of the family situation. Yucky. Your approach sounds good. You might add, "oh, and can we see the trust agreement, so we know how to set up the trust for our kids." If he bawks, you know there's trouble.

**MonkeyMama** · 03-06-2007, 03:43 PM

I don't really think overall that the trustee has to report anything if you don't ask. There is some standard form letter in a lot of these types of things that tells minimal info. & that is all that is required.

But you can certainly demand the right to know more. I can't really say much about it - trusts are VERY complicated, all very different. But what I do know is you probably have a right to know more, but you may have to ask to find out.

I found this which is interesting:

"However, as a beneficiary of a trust, you are not left to the whims of the trustee. The legal documents setting up the trust spell out your rights as the beneficiary in detail.

You have a right to all kinds of information about the trust, including the legal documents that established it, financial records and tax returns. You are entitled to meet with the trustee and to expect the trustee to respond to your requests (though there is no guarantee you will always like the response). Not all trusts are alike, of course, but in general, you are entitled to hire a lawyer to help determine and enforce your rights."

question re trusts