Legal Question in Wills and Trusts in Georgia

trustee borrowing question

My husband is trustee of his deceased father's trust. He has taken a good bit from the fund and is now in jeopardy of being sued by his sister. He is more than willing to repay the amount as he can. However, is there some relief possibly from the trustee power to make secured or unsecures loans to beneficiaries at his discretion? After all, he is a beneficiary to 1/3 of the trust. We truly want to make this right but don't have the financial backing to repay all at one time. Also, can he just forego his portion of the estate at the time it is finally to be divided?


Asked on 1/18/08, 9:52 pm

1 Answer from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: trustee borrowing question

The place to start is facing reality. "Borrowing" is not the proper term for wrongfully taking trust funds. The proper terms may include theft, embezzlement, breach of fiduciary duty, fraud, etc. A bank teller does not "borrow" from the cash drawer - the teller steals the money. Having faced the truth, the best option for people in that position may be to come clean with other family members, immediately resign as trustee, reach an agreement about repayment and other financial matters, and begin to mend the relationships. A consultation with a criminal lawyer is not an unreasonable act.

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Answered on 1/19/08, 8:20 am


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