Legal Question in Wills and Trusts in Nevada
Trust Account
My wife and I are the legal guardians for our grandson who has recently been awarded an out of court monetary settlement due to the untimely death of his father. The initiation of the legal proceedings which led to the settlement was brought about by our grandson�s father�s parents. We were instructed by their attorney to open a Trust Account for our grandson in whom the money from the settlement would be deposited electronically. All we had to do was setup the account which we have done. Several days ago we received a letter informing us that the check for the monetary settlement would be sent to my wife and me by over night courier payable to my wife and me on our grandson�s behalf. My question is since my wife and I have been responsible for taken care of our grandson almost from birth (six months old) is it legal and more importantly morally and ethically right to take a portion say twenty percent of these proceeds and set it aside for his immediate needs and deposit the rest eighty percent in the Trust Account hopefully for the furthering of his education (College) when the time comes nine years from now. Please advise, thank you.
3 Answers from Attorneys
Re: Trust Account
It sounds like you are the Guardians of the Person of your grandchild. If that is the case, you need to ask the Clark County Guardianship Court to appoint you as the Guardian of his Estate as well.
Once that is done, you can prepare a monthly budget for court approval and the court will allow monthly withdrawl of that amount. The remainder stays in a blocked account for your grandson.
Yearly accountings will need to be filed.
Any attorney fees and costs incurred to set all of this up, will be payable through your grandson's funds.
Please contact me since I am assuming that you probably got the Nevada guardianship on your own, without a lawyer, otherwise you would have asked this question of your guardianship lawyer.
Greta Muirhead, Attorney
Alternate Guardianship Commissioner--Clark County, Nevada.
Re: Trust Account
You may not take any of the funds without Court Order. All funds are subject to the scrutiny of the Court. All monies must be accounted for to a Judge. If you believe you may be entitled to any monies, you must apply to the Court PRIOR to taking any funds.
Re: Trust Account
I gather that your grandson is about nine years old. You do have a claim for the normal expenses of caring for him.
However, to protect yourselves from claims of breach of fiduciary duty, if I were in your shoes, I would seek to have a court approve any disbursement to yourselves.
You haven't said if you already have legal custody of your grandchild. You may already be a guardian of his estate. Now that his estate has some assets you may already have a duty to account to the court and seek the court's approval for substantial withdrawals.
I could give you additional advice if you contact me with these additional facts.
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