Legal Question in Wills and Trusts in New Jersey

Trust Fund released early?

Hello,

My grandfather set up two trusts before he passes (about 15 years ago) and the way it was set up is this. dividends from the stocks in the trust would be used to pay out a yearly amount to my father and my aunt (his only two children). when they pass, the money is to go to their children on a yearly basis. Once we reach the age of 50, we get the trust turned over to us.

now... I am my fathers only child. He passed away last year. the estate has since been settled and I have been receiving the payments on time and everything is going fine. However, the lawyer said he would look into the legality of having the trust released to me early since he thought 50 was just a little ridiculous. He's now saying that he doesn't think it can be done but he's not really giving much of a legal answer... more along the lines of beating around the bush.

so... my question is, can this sort of thing be done? can I pursue this on my own? can he fight it? (maybe I'm too cynical but lets face it, he may simply want to keep control of the trust so he can keep collecting fees)


Asked on 7/09/09, 11:01 am

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

Re: Trust Fund released early?

You are really speaking about "trust busting"...which is the process of terminating a trust before it's stated ending date.

I would need to carefully review the terms of the trust to provide you with an opinion on whether or not the trust could be terminated early or not....If the trustee is not inclined to terminate the trust early, you will need go to court and seek approval from the judge. This is often an uphill battle, especially if the trustee is not willing to go along.

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Answered on 7/09/09, 11:23 am
Walter LeVine Walter D. LeVine, Esq.

Re: Trust Fund released early?

I agree with Jon that the trust documents must be read to provide you a proper rersponse. Some documents, like I use, give the trustee discretion to terminate earler than a final age, or to distribute assets earlier (although there may be limited reasons allowing this). There are many legitimate reasons to allow the trust to continue longer, including asset protection from creditor claims and no claims from a spouse in the event of a divorce, so you might want to recosider your position. If you could get me copies of the documents, I could review them and provide suggestions for your consideration.

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Answered on 7/09/09, 12:44 pm


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