Beneficiary of a trust that isn't progressing, can I do anything?

Question

My grandmother passed away last year, and I am a beneficiary of the trust along with 6 other people. My two aunt's are the trustee's. They are not agreeing on anything and there are multiple issues including one of them wanting to purchase one of the properties in the trust for a much lower price than it should be listed for. They both have legal council and are wasting thousand of dollars monthly and there is no progress being made. I don't believe my aunt's will ever agree with each other, as there are a handful of issues, so I believe this will end up in court anyway. 
My grandmother passed away in May 2023 so it has been over a year with no distributions. Is there anything I can do as a beneficiary to speed this up so we can all get distributions?

James L. Arrasmith · Answer

You have the right to take action if the trust administration is being delayed, especially if it's affecting your ability to receive distributions. As a beneficiary, you can request an accounting of the trust assets from the trustees to understand what's happening with the trust. This might also put pressure on your aunts to move the process forward. 
 
If the trustees are at an impasse and it's clear they can't work together, you can petition the court to remove one or both of them. The court can appoint a neutral third party trustee to ensure the trust is managed properly and distributions are made. 
 
Additionally, if one of your aunts is attempting to purchase property from the trust at an unfair price, this can be challenged legally. You have the right to ensure the trust's assets are handled fairly and in the best interest of all beneficiaries. Taking these steps may help move the process along and protect your interests.

Julie King · Answer

A common MISTAKE people make is thinking they own assets sitting in a trust because they are a beneficiary (person named in a trust to inherit the asset) and the person who used to own the asset has died.  But, while an asset is still in a trust, it rarely (if ever) belongs to the beneficiary named to ultimately receive it. That beneficiary cannot decide to swap the asset with another asset in the trust or do anything with the asset until AFTER it has been taken out of the trust and handed to them by the Trustee (the person in charge of doing what the trust says.)  Once an asset is removed from the trust and handed to the beneficiary, THEN the beneficiary can do whatever they want with the asset. Not before. Because they don't OWN the asset until it is taken out of the trust and handed to them.   
 
Trustees are legally bound to follow the terms of the trust and the law. They have a number of legal duties including putting the needs of the beneficiaries ahead of their own self-interests. It sounds like your relative may be violating some of her duties as well as potentially violating the terms of the trust. But no lawyer can say one way or the other without reading the particular trust that is at issue. Each trust has different language. So one trust may allow the Trustee to buy an asset and another trust will not. Take a copy of the trust to a lawyer near you and have the lawyer advise you on your particular situation. Best wishes!

Q: Beneficiary of a trust that isn't progressing, can I do anything?