Legal Question in Wills and Trusts in Illinois

I caught the Bank Trustee (parent's trust)self-dealing (selling assets to major depositors and finacing the deal) and asked that they resign. They did resign and on the last day gave out retainers to two law firms for "future litigation". They said they would return what money, that was left, if I agreed to signing a "Release to hold harmless". Is there any precedence for this type of action or are they acting criminally?


Asked on 3/08/12, 1:16 pm

2 Answers from Attorneys

Adam S. Tracy Securities Compliance Group Ltd

Thank you for your question. The provision of retainers to law firms would appear to be further dissipation of assets of the estate. To thereafter try to compel you to sign a release in exchange for the return of the funds is, in itself, an indicia or self dealing. While potentially not criminal in nature, you may nevertheless have various civil claims against the Trustee as a beneficiary of the estate. This seems to be a very fact-intensive matter, so I am hopeful that this answer can provide you with some level of guidance. Should you have further questions, please don't hesitate to contact me: [email protected]

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Answered on 3/08/12, 1:33 pm
Virginia Prihoda Law Offices of Virginia Prihoda

Are your parents alive? You, or they if they are alive, need to consult with an attorney in person and explore the facts and discuss legal options available. Unfortunately this may result in further erosion of what's in the trust, but maybe if the bank is proved wrong there can be some recovery. Remember, crimes are offenses against the public, proving a crime has occurred doesn't necessarily advance the interests of the victim.

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Answered on 3/08/12, 1:50 pm


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