Legal Question in Wills and Trusts in Illinois
I believe I have been the victim of gross trustee negligence and wonder if I have recourse and what that recourse could be. The trustee has unfairly favored my mother who is an equal party to a trust along with my sisters. The trustee has denied requested distributions to myself and my sister that were clearly in keeping with the spirit of the trust while providing regular distributions to my mother who is wealthy and not in any need. This trust was established by my father who died while I was a child in the mid 1970s.
The language in the will reads as follows: "Notwithstanding the provisions of Sections 1 and 2 of this Article V, if at any time Trust A shall have been completely withdrawn or exhausted, then my wife shall have the power at any time and from time to time thereafter, except during any period in which she shall be married, by an instrument in writing signed by her and delivered to the Trustee, to withdraw such amounts from the principal of Trust B as my said wife shall specify in such direction, not exceeding in the aggregate in any calendar year the greater of $5,000 or 5% of the principal of Trust B as of the end of such year. The right of withdrawal shall not be cumulative."
My mother has been receiving distributions in excess of $50K per year for at least a decade. The trust balance has been around $400K. She has been married to the same man for over 30 years. As I read this language, it would appear that those distributions should have been prohibited due to her being married, and in any event, should not have exceeded $5K or 5% per year.
The trustee is one of the largest banks in the world. The unlawful distributions likely exceed $500K and are probably closer to $1M at the expense of the other trustees, all of whom live far more modestly than our mother. Do you believe I have recourse against the trustee and if so, what might that be? Thanks in advance for your feedback!
1 Answer from Attorneys
It's impossible to judge just from your description.
1. Were the distributions from Trust A or Trust B?
2. Were the distributions in the form of withdrawals pursuant to the 5 or 5 power, or were they discretionary distributions under a different provision?
3. Is she entitled to income from Trust A and/or Trust B?
Just a few of many questions. You would need to have an attorney examine all of the provisions of any trusts and then review the annual accountings and then possibly inquire of the trustee, to see if anything incorrect has been done, and if so, what can be done about it.
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