| Changing trust terms….read on:
CLIENT QUESTION:
My husband and son both passed away. My daughter-in-law is now the trustee of my irrevocable trust. Everything I have is going to my 3 grandkids. Will she be compensated in any way? If not, how can I make sure that she is? Thank you.
MY RESPONSE:
First, I am so sad to hear of your multiple losses. Big Hug.
As to your question, we start the analysis by reading the trust to see if it allows for trustees to be compensated. Most of my trusts say no as most clients do not think family should be paid.
If yours says no compensation, there is a way for us to amend the trust if we obtain the consent of all trust beneficiaries (who are all adults), or we have the power to change the trust beneficiaries to ONE or more adult beneficiaries who will consent. If we are stuck with a minor beneficiary (under 18), then we cannot obtain their consent (without great difficulty).
If we cannot amend the trust, then your best bet is to compensate her with monies outside the trust. For example, you could name her as the beneficiary of a bank account.
Having said all this, most mothers I know would be more than happy to be an uncompensated trustee for a trust that is for their children. |
