Legal Question in Wills and Trusts in Arizona
Family trust-conflict of interest
My father recently died and myself and my 2 sisters are co-beneficiaries. My brother-in-law has my father's trust invested through his investment brokerage. The trust if to be distibuted in the next 2 months. What specific paperwork should I request to review all transactions for the past year with my father's accounts? I'm not sure all investments will be accounted for and am not sure that the investments were made in my father's best interests (I believe he was put in some risky investments to advantage the brokerage rather than the trust fund). Also, my sister closed my father's checking account and invested the funds with her husband's brokerage without asking me or my sister. Was this legal and how can I find out what his checking account balance was? This is causing much family strife and I sincerely appreciate any advice you can offier. I am trying to avoid legal intervention and hope that as co-beneficiary I have a right to all my father's financial information but am not sure where to begin. I believe my father also had life insurance that my sister and brother-in-law had him buy but I don't know how to find out about that. Sincere thanks in advance for any advice you could offer.
2 Answers from Attorneys
Re: Family trust-conflict of interest
The first step will be to obtain a copy of the trust and any will. The language of the trust itself is crucial.
Then next step will be to request an accounting. The monthly statements from the brokerage account should reveal a lot of information. You might have that reviewed by another broker to get an evaluation of whether there was any untoward conduct, such as "churning" the account.
The beneficiaries can retain their own attorney. We offer free, no obligation initial consultations, or see another estate attorney.
Best regards,
James D. Jenkins
Re: Family trust-conflict of interest
It is the responsibility of the Trustee to render an accounting for the previous life of the Trust according to the terms of the Trust Agreement. That includes all investments, income, payouts, etc. If this is not done timely in accord with the Trust terms, then resort to the legal system for enforcement is the only remaining option. Consult an AZ Estates and Trusts attorney for more specific information. S/he can advise you as to the requirements of AZ law and the Trust Agreement, and what your rights as beneficiaries are.
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