Rights of Beneficiaries - YouTube

Hi. Lee Phillips here.

I want to talk to you about the rights of beneficiaries

of a trust.

Now, you're going to set up your living revocable trust

you, your spouse, you're going to be

the primary beneficiaries

and you don't have to do reporting for yourself, okay?

You know what's going on.

But when you die

the trust will become irrevocable.

Now, that might not be until both spouses have died

or it could be partially when one or the other

we don't need to get into that.

But when the trust becomes irrevocable

Then the trustee has an accounting issue

Actually there are two issues

there's an accounting issue

and there's an information

the duty to inform

and the duty to account

is what we say.

The trustee has a a duty to the beneficiaries

in fact the trustee's duties to the beneficiaries

is one of the most strict

duties--requirements--in the law.

It's a big deal.

It's called the "fiduciary duty"

well defined.

Many of the states

and these are state laws, ok?

But the states require that within 60 days of the trust becoming irrevocable

the trustee has to notify

each of the beneficiaries

they have to notify them that the trust exists

they have to notify them as to who the trustee is

and this is all listed in the state laws.

They have to notify them

who the settlor was

and so on and so forth.

Now these are all of the trustees

who are what we say "current"

excuse me, all the beneficiaries

who we say are current beneficiaries.

Or even a remainder or a future beneficiary

is often required to get these notices.

So read the state law

when you're a trustee

of a trust that has become irrevocable

and it will list the requirement

that you have to do in order to notify

the beneficiaries

as to what's going on.

Now, the beneficiaries are always going to have a right

to the trust

they can see the trust.

And I calls all the time

my brother won't let me see the trust

he won't account for it

I don't know where the money's going.

I don't know if I'm supposed to get any money.

No, under state law

the trustee has to give you a copy of the trust.

And that's pretty much universal.

The beneficiaries have rights.

The beneficiaries have a right to the accounting.

They have a right to know

what the trustee is getting paid

what the agents of the trustee are being paid.

They have a right to know where all the money goes

because it's their money.

They're the beneficiaries.

It's not the trustee's money.

The trustee is simply holding it

for the benefit

of the beneficiaries.

So they have a right to all the accounting.

Obviously, when the trust wraps up

all the assets have been distributed

they have a right to all the accounting of the trust

and it's wrap up.

And this is a pretty much slam dunk

in every state

and yet I continually

find people

"I can't see the trust"

"They won't give me an accounting"

"I don't know what's happened"

No, you have a right.

You may have to bring them to court

Sue them to get that right

but I would imagine

that it would be pretty easy for you

to have your legal expenses paid

by the trustee

if you have to take them to court

to get these accountings

because they're black and white

in your state law.

Just go to your state law

on the internet

and look up

rights of a beneficiary

and it will come right up.

You'll see it.

Lee Phillips, talking about rights of a beneficiary.