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.

Lincoln Stretch rentals Alsip ..

In The News:

Fitness centers and workout studios are starting to establish policies that prohibit shooting phone videos to protect people's privacy.

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

Apple recently notified a small number of iPhone customers in 92 countries that their phones may be under attack by mercenary spyware.

An artificial intelligence-powered home security system can fire paintballs and tear gas at trespassers. The camera identifies human faces and animals.

Technology expert Kim Komando gives her tips and tricks on enhancing your user experience a smartphone and other devices you use everyday.

A new camera called NUCA uses artificial intelligence to create deepfake photos of subjects by stripping away clothing in close to real time.

The Kimberley Kube trail-ready camper has a compact but spacious design and combines luxury, functionality and ruggedness for a weekend getaway.

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

Emails instructing you to reset your password for an account may be legitimate, or they may be scams. Kurt "CyberGuy" Knutsson explains.

Northrop Grumman's Manta Ray uncrewed underwater vehicle aims to revolutionize undersea missions — it glides through the ocean without human assistance.

Learn how to work Google's calendar application to streamline and organize your daily tasks from technology expert Kim Komando.

If you do not want Facebook to have automatic access to your private photos, follow our tips to protect yourself. Kurt “CyberGuy" Knutsson shows you how.

Kurt “CyberGuy" Knutsson goes into detail about Apple’s recent iOS update that allows iPhone users to instantly translate spoken language simply by using the Action Button.

Safeguarding your digital life with a reliable physical backup isn't just a precaution, it's a necessity. Kurt “CyberGuy" Knutsson provides the essential backup checklist.

Kurt “CyberGuy" Knutsson reveals how a Redditor exposed false recycling claims at their apartment, highlighting a report that only 21% of U.S. recyclables are processed.

Kurt "CyberGuy" Knutsson offers a travel toolkit featuring five technology tools to help you with booking flights and hotels for your summer vacation.

The bubble behind the clock on your iPhone can appear in different colors. Kurt "CyberGuy" Knutsson explains what each of those colors mean.

Scammers are using the power of artificial intelligence to mimic voices of people and are using the fake voices to commit crimes, like kidnappings.

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

Tech guru Kurt "CyberGuy" Knutsson explains the science behind the Invisibility Shield, a 6-foot shield that makes people become invisible.

The International Olympic Committee on Friday announced plans to use AI in various Olympic aspects, including athlete identification, training and judging.

Tech guru Kurt "CyberGuy" Knutsson explains an easy trick to avoid squinting while working or surfing the web by zooming in on your personal computer.

Streaming giant Roku has recently been targeted by a pair of cyberattacks, and the company confirmed over a half million Roku accounts were compromised.

The Land Aircraft Carrier combines an all-terrain, six-wheeled vehicle with a two-seat aircraft, which features electric vertical takeoff and landing.

The European Union has sent TikTok a "request for information" on the video sharing platform's newest app, TikTok Lite, under the Digital Services Act, with the aim to clean up social media.

Trustees: Who Can You Trust?

Wealth Building