Legal Question in Wills and Trusts in California

I have already attended business school and have just received a copy of my grandfather's trust open his death...do I get reimbursed? I was never made aware of this trust prior. "Prior to distributing principal and accumulated income on the thirthieth birthday of (name) the Trustee shall have the discretion to pay trust income and invade principal to pay for the education of the Settlor's grandchildren. It is the Settlor's intention that his grandchildren pursue as much education as they may desire even if it leads to disporportionate distributions of principal." My father who is trustee says education is only paid for after my grandfather's death. My sister turns 30 in less than 2 years.


Asked on 6/24/11, 4:33 pm

4 Answers from Attorneys

Aaron Feldman Feldman Law Group

Maybe. Sorry for such an indecisive answer, but it would take a far more careful review of the entire trust documents to make sure that they can be harmonized. Just in the snippet you have quoted there is a seeming inconsistency. On the one hand, payment of education is discretionary. On the other, education is important. But what I don't know is whether those provisions apply prior to your grandfather's death? Usually there are provisions that state that the Settlor gets all of the income during the settlor's lifetime. That appears to be what the trustee is saying. And that is why an attorney would need to review the entire trust to give you a complete answer or opinion.

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Answered on 6/24/11, 5:11 pm
Michael Weinstein Law Office of Michael R. Weinstein

Without reading the trust I cannot give you a specific answer to your question. However, you quote wording from your grandfather's trust that states, "The Trustee shall have discretion to pay..." If this is the exact wording and there are no other terms in the trust stating otherwise, it is up to the trustee to decide if he wants to pay for your education. Your grandfather's trust appears to give the trustee that power by granting the trustee discretion to pay or not to pay. If you have a copy of the trust and want further advice you should consult with an estate planning attorney to find out what you are entitled to.

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Answered on 6/24/11, 5:17 pm
Eliz. C. A. Johnson Eliz. C. A. Johnson

Indeed, as Mr. Weinstein states, your Dad apparently had the discretion and chose not to exercise it OR you are misinterpreting the Trust. Take it to the nearest estate planning attorney to see what you should do.

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Answered on 6/24/11, 5:18 pm
Kurt Seidler Law Offices of Kurt A. Seidler APC

without knowing more I would say no, you do not get reimbursed, but your dad seems to be saying that if you wanted to get a higher degree after grandpa's death he might (MIGHT) pay for it.

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Answered on 6/27/11, 10:44 am


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