Home
>
Wealth Building
>
Trustees: Who Can You Trust?

Trustees: Who Can You Trust?

Early in my legal career I represented two young women in their early 20s.

Their mother had been killed in a car accident when they were infants. An out of court settlement had been reached and a lump sum of cash had been awarded to each of them.

Since they were "minors" (too young to have legal capacity to act for themselves) the money was given to their father "in trust" to be held until they reached the age of 18.

The reason they had been referred to me was because they had both reached 18 and had asked their father for their money. He had ignored their requests.

I was hired to get their money.

Easier said then done. Their father hired a lawyer of questionable repute who threw up every roadblock in the book, hoping to make us go away.

We eventually learned why. Their money was gone.

Their father had spent the girls' money? some on personal living expenses, some on vacations. He even had given some of the money to a friend for a business that had failed.

Their father was broke. There was no bond (insurance on a trustee's actions) and no money.

I sent the case to the DA's office for criminal prosecution and last I heard there was a plea bargain that included a requirement that he work to earn the money to pay them back.

The moral of the story? Who CAN you trust?

When you set up any kind of trust, a living trust, an irrevocable trust, a charitable trust, any kind of trust, how will you be sure they will perform in an honest an ethical way?

One way is to require a bond. However, often you will see in the pre-prepared "forms" or "kits' that the requirement for a bond is removed.

Often, it is wise to appoint two or sometimes three trustees so they can keep an eye on the others. But then the drawback is that you have a trust that is managed by committee.

There is no easy answer. The answer depends on your particular circumstances.

How much are you worth?

What type of assets do you own?

How complicated will management be?

Will there be management during your life?

What other obligations does the person you've named have (are they raising a young family?).

Even with the case of the two young women, the father had an obligation to give accountings to the court showing what he had done with the money. He never did and there was no one around to make him.

So, don't take the appointment of a trustee too lightly. Talk it over with your family and your lawyer. And be sure to review your document every few years. Family circumstances may have changed where someone no longer has the time to step in if they are needed.

Good luck and until next time,

Phil Craig

P.S. Feel free to forward this on to any friends.

Phil Craig is a licensed attorney and entreprenuer. He started practicing law at age 25 in 1979. He does not take on any more clients, but is advisor to some of the biggest names in the internet world. He shares his knowledge gained over the last 25 years at his Living Trust Secrets newsletter site: click here=========>http://www.livingtrustsecrets.com

** Attn Ezine editors / Site owners **
Feel free to reprint this article in its entirety in your ezine or on your site so long as you leave all links in place, do not modify the content and include our resource box as listed above.

If you do use the material please send us a note so we can take a look. Thanks.

Wood Dale Chicago prom limo .. Lockport Chicago limo O’Hare

In The News:

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents

Internet browsers are useful, but they can be dangerous. Clicking on malicious links can direct you to dangerous websites that steal information or infect your device.

Apple's latest iOS update introduces advanced artificial intelligence capabilities, which may be capturing and analyzing sensitive information.

Breach site confirmed 56,904,909 Hot Topic users' data leaked online. Tech expert Kurt “CyberGuy" Knutsson says the company's silence makes matters even worse.

Tech expert Kurt “CyberGuy" Knutsson discusses how an innovative Easy-Way kit turns standard strollers electric, simplifying navigation for parents.

Tech expert Kurt “CyberGuy" Knutsson talks about T-Mobile being hacked in broad cyberattack on global phone and internet companies.

Tech expert Kurt “CyberGuy" Knutsson shows you how to add, customize and manage widgets for quick access to apps and info from your iPhone home screen.

Wrong Google searches can not only compromise your device and personal data. They can also bring law enforcement to your doorstep. Hackers are targeting Google searches.

China's Shanghai Kepler Robotics has developed a new humanoid robot that can carry up to 35 pounds per hand for commercial applications across various industries

Checking your hearing has gotten easier with the new hearing test feature in AirPods Pro 2. You can take reliable hearing tests using your iPhone or iPad.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Kurt "CyberGuy" Knutsson explains how a VPN — virtual private network — works and how running it can slow down the operation of your device.

The WalkON Suit F1, an exoskeleton developed to help people with disabilities, can actually walk over to a person in a wheelchair, solving a major problem.

ClickFix, a new scam targeting computer users, is on the rise in the U.S. The scam prompts its targets to click on a link to fix a problem.

Skydweller is the world's largest unmanned solar-powered aircraft that can stay airborne for weeks, and even months, without refueling.

The U.S. government said it is investigating after People's Republic of China hackers targeted commercial telecommunications service providers in the U.S.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.

Scammers are using increasingly sophisticated ways to lure unsuspecting victims, and some are impersonating an email help desk or support team.

You can unsend or edit your iMessages with the latest iOS updates. Kurt the CyberGuy explains how you can save yourself some potential embarrassment.

Kurt “CyberGuy" Knutsson says there’s been a rise in cybercriminal services using hacked police and government emails to send subpoenas and data requests to U.S. companies.

Kurt “CyberGuy" Knutsson discusses how Axiom Space and luxury designer Prada are collaborating on NASA's Artemis III spacesuit design.

Voice assistants may cause confusion across devices. Tech expert Kurt “CyberGuy" Knutsson offers some solutions to fix it.

Shameless scammers trick veterans into giving personal info or cash. Tech expert Kurt “CyberGuy" Knutsson explores five common scams.

Tech expert Kurt “CyberGuy" Knutsson helps you honor our heroes with these powerful podcasts, audiobooks and documentaries this Veterans Day.

Trustees: Who Can You Trust?

Wealth Building