I am the power of attorney of our family trust. I cannot mentally or emotionally handle my Dad abusing his money! I'm finding out he is entertaining unhealthy relationships.
Dealing with trusts need to have an attorney. I’d suggest you get the trust and carefully review it, making notes as to what areas you don’t understand and take Trust and your notes to the law firm that did the Trust originally.
My experience is that it’s the type of trust will be the determining factor as to what can or cannot be done and your state laws determine the steps required. A revocable and Testamentary Trust probably can be terminated. Revocable usually have some sort of wording within Trust as to when to allow for a termination. Testamentary would have to be filed as an order request for probate judge & their in-house legal to review beforehand and determine if order to be signed off on. Irrevocable - if I’m not mistaken- has to go through a dissolution process. None of these are a DIY.
If Your father is spending trust assets, and there isn’t an income stream to feed the trust, it will get to the point where it flat defunds. This really can get messy especially if your the Trustee and it defunds. Really you want to plan a defund if at all possible. If this is what’s happening try to do a projection on when defund to occur to discuss with the atty. Try to plan defund like 6 - 8 months ahead of zero $. Really none of this is a DIY. Take your questions and concerns to the atty who did the Trust initially.
Camcam, sounds like you are the "Trustee" of the family trust. Curious why your parents aren't the Trustees? Do either of your parents have health issues, or memory issues, and that is why you were named Trustee?
How is the Trust set up? Is Dad given money on a regular basis from the Trust? If yes, then he can do what he pleases with his money, even if he is not managing the money correctly. Unless he has Alzheimer's/Dementia where it makes it difficult for him to handle money.
Make an appointment with the Attorney who drew up the Trust and explain what is going on, and if there is anything that can be changed with the Trust. Hopefully the Trust is a Revocable Trust and not an Irrevocable Trust.
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My experience is that it’s the type of trust will be the determining factor as to what can or cannot be done and your state laws determine the steps required. A revocable and Testamentary Trust probably can be terminated. Revocable usually have some sort of wording within Trust as to when to allow for a termination. Testamentary would have to be filed as an order request for probate judge & their in-house legal to review beforehand and determine if order to be signed off on. Irrevocable - if I’m not mistaken- has to go through a dissolution process. None of these are a DIY.
If Your father is spending trust assets, and there isn’t an income stream to feed the trust, it will get to the point where it flat defunds. This really can get messy especially if your the Trustee and it defunds. Really you want to plan a defund if at all possible. If this is what’s happening try to do a projection on when defund to occur to discuss with the atty. Try to plan defund like 6 - 8 months ahead of zero $. Really none of this is a DIY. Take your questions and concerns to the atty who did the Trust initially.
How is the Trust set up? Is Dad given money on a regular basis from the Trust? If yes, then he can do what he pleases with his money, even if he is not managing the money correctly. Unless he has Alzheimer's/Dementia where it makes it difficult for him to handle money.
Make an appointment with the Attorney who drew up the Trust and explain what is going on, and if there is anything that can be changed with the Trust. Hopefully the Trust is a Revocable Trust and not an Irrevocable Trust.
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