Q: California Trustee has stopped all gifting to relatives, despite long history of gifting before dementia. What to do?
My aunt and uncle were gifting their allowance to close relatives. Most of the relatives are dependant upon this money to survive and pay bills . My aunt and uncle always expressed that they wanted to care for their family. Uncle has died and recently aunt has early dementia, their estate is in a trust. The Trustee has stopped all gifting, despite aunt's wishes to continue and a history of 10+ years of gifting. Her sister (last relative and one of the beneficiaries) is now in dire straits and will have to sell her belongings and home. It is known in the family that they wanted to help. The gifting was something set up through the accountant and was thought to continue until aunts death (which could be many years from now). There are many beneficiaries in the trust, and I know that the trust has the income to support the gifting, as well as the addition of supporting my aunts dementia care. What can be done so those who were dependant upon the gifting can continue to receive it?
A:
The answer is in the Trust itself. The Trustee is obligated to follow the instructions of the Trust.
The Trustee may not have any choice about making the gifts. At the death of the Uncle, the Trust may have become irrevocable with instructions about the Aunt if she becomes a Special Needs person, with severe limits about what the Trustee can do with the money. The Trustee may just be worried there isn't enough money left to care for Auntie.
If the Aunt is still able to make her own decisions (that is, her dementia is not bad yet), she can probably fire the Trustee; if the Trust is still revocable in part then she can certainly fire the Trustee. Or there may be a Trust Protector appointed under the Trust who can do that. Usually SOMEONE can fire the Trustee; you need to read the Trust.
Carol A Fauerbach and Sally Bergman agree with this answer
1 user found this answer helpful
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