Legal Question in Wills and Trusts in New Jersey

Rights of Beneficiaries

Nearly 30 years ago, my parents died and a trust was set up for the kids. Twelve years ago, we received what we thought was the distribution of the estate and everything was final. Now we have found out that the trustee overlooked distributing a large amount of stock. Much of it has been difficult tracking down because the trustee was clearly in over his head. He kept few records. He never provided an inventory or an accounting of the management of the trust to us. Now, he is attempting to sell whatever stock he can find and give us cash. Do beneficiaries have a right to receive stock instead of cash? He has also asked us to sign a waiver of liability before he will release the money to us. Is that legal? Do we have a right to an inventory or an accounting of the trust? What rights do beneficiaries have against a trustee who doesn't know what he is doing? What records are we entitled to? Much thanks.


Asked on 7/20/05, 3:35 pm

2 Answers from Attorneys
Jonathan Chester The Law Office of Jonathan S. Chester, Esq., LLC

Re: Rights of Beneficiaries

As trust beneficiaries, you have an absolute right to an accounting. You can demand an accounting by filing a complaint with the court.

The trustee should normally try to make a distribution to the beneficiaries "in kind" unless that is not possible.

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Answered on 7/20/05, 4:19 pm
Robert Davies The Davies Law Firm, P.A.

Re: Rights of Beneficiaries

From the tone of your question, it seems that the trustee was not a Bank or professional who would know how to handle a trust properly. The trustee's actions are not appropriate. The trustee must provide an accounting if ordered to do so by a Court, and a Court will order it if you ask for it. You may NOT be forced to give a blanket release by the Trustee. I can understand a person who is named as trustee having problems keeping the records straight if he or she does not get assistance from an attorney or accountant. However, when a substantial error is made, the trustee has very serious legal liability for the error. I am surprised the trustee has not tried very hard to repair the damage, apologize and make the beneficiaries (you and your brothers and sisters) as happy as possible.

I have handled numerous similar claims. Please call if I can assist you. 973-890-0400

Bob Davies, Attorney At Law

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Answered on 7/20/05, 5:37 pm


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