Legal Question in Wills and Trusts in Utah

Re: Family trust issues after death

1st if a person set up 2 trusts governing property years before a second marriage and death, can the trust be altered by the issuer? ANSWER - yes if the trust is a living trust or a revocable trust, no if the trust is irrevocable.

2nd- if funds were misappropriated from the trust during the second marriage- can the trustee's sue for re-payment? ANSWER: Yes, in fact the trustee has an obligation to prosecute to defend and protect the trust. Failure to prosecute may make the trustee liable for the loss.

3rd- who is liable for taxes- the trustee's or the spouse to whom the money followed? ANSWER: The trust should be filing its own tax return for income to the trust. If the trust devolves money to a beneficiary that beneficiary may have a tax liability. If the funds were taken by fraud or other illegal means, the perpatrator may incur tax liability.

4th- can the second spouse be sued for fraud or any type of criminal intent if its proven they were marrying for the money? ANSWER: Depends. If the spouse can prove that the marriage was based on fraud, the marriage can be declared annulled or void; or a divorce can be granted. Proof of criminal intent would assist criminal prosecution for fraud on the trust.

It is clear that the trustee needs legal assistance. The trust should reimburse the costs of legal defense to the trustee. This appears to be a complicated matter. You are welcome to call to discuss this matter - at no charge.