How long do you have to settle an estate? The beneficiaries of an estate are recently eager to receive their inheritance. In a common scenario, a trust was left instead of an actual will. All the parties received their respective shares except for the two brothers and a sister who is the executor. The trust instructed the brothers to divide the estate property in half for each of them. The sister was to get $15,000. However, one of the brothers lives in the home.
As you may know, the administrator or executor of an estate has the job of collecting the decedent’s assets, paying debts, making distributions to the beneficiaries and finally closing the estate in an expeditious manner.
nj.com’s recent article entitled “How long does it take to pay out a family trust?” tries to sort out what the siblings need to do to settle the estate. The key factor in this scenario is the wording of the trust. There are situations in which a trust is used as a substitute for a will. In that case, a person’s assets are placed in trust. The trustee pays all the liabilities and administers the assets in the trust in accordance with the instructions of the trust during the individual’s life and after her death. Even when trusts are used as will substitutes, they aren’t always designed to be closed with distribution to happen immediately after the debts are paid as in the case of the estate. The terms of the trust dictate the trustee’s duties as to the distribution of trust assets. Speak with an estate planning attorney to review the trust.
If you are a beneficiary of a trust and think that the trustee is breaching his fiduciary duties, you should inform the trustee of the nature of the suspected breach. If nothing is done to remedy this, you may ask the court for help. One option is that you can request the court to order the trustee to take actions, which you state in your complaint filed with the probate court. Another option is to request that the court direct the trustee to stop taking specific actions that you detail in your complaint. A third choice is to ask the court to remove the trustee due to breach of fiduciary duties that you set forth in your complaint filed with the court.
However, such court intervention can be expensive. Another thing to consider is that the trustee may petition the court to have his legal fees paid from the trust funds—which will deplete the money in the trust. Because of this, it is usually best to attempt and resolve these issues before getting the court involved.
Speak with an experienced estate planning attorney if you find yourself in any of these situations.
Reference: nj.com (Feb. 12, 2020) “How long does it take to pay out a family trust?”