Legal Question in Wills and Trusts in New Jersey
Trust withdrawals
my deceased hubby set up a 40/60 share of a family trust; part of which was a pharmacy with a loan of $100,000 for a Medicine Shoppe Franchise. The state of NJ cancelled his right to service PAAD (an assistance to seniors) and we lost 38% of our customers in one day (in a senior area). Medicine Shoppe came to me as an investor of ''purchasing'' the license agreement to settle the monies. Needless to say, my stepson didn't contribute a dime to settle the problem. THE PROBLEM: my stepson sued me for $100,000 (2 years later). After quite a few months of negotiation between lawyers, the judge finally settled my stepson's suit for $15,000 (which I was allowed to withdraw from my share of the trust instead of my own money. MY QUESTION IS: can I pay my lawyer's fees from my share of the trust?
2 Answers from Attorneys
Re: Trust withdrawals
It apperas this was not covered by the settlement, and to get a decision will probably require another hearing. Not knowing the language of the trust document, my reply will be general. If there is language allowing discretionary withdrawls, of income or principal, request it of the trustee. The payment of legal fees might be a deduction on your personal tax return, so you would want to pay the fees personally, not directly through the trust which will not be eligible to take the deduction, since this was your personal obligation. If there is no ability for a discretionary distribution, you may need to back to Court for approval, although this will mean more fees.
Re: Trust withdrawals
Your question involves many issues. Have you consulted with an estates lawyer in connection with administering your late husband's estate? You should engage a lawyer to assist you with this.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
