Legal Question in Wills and Trusts in West Virginia
Trust being used by trustie to rack up dept?
My brother is in charge of my
fathers finaces. He has placed all his assets into a trust for me and my 2 brothers.
I believe my brother is using these assests to rack up a lot of debt. How can I find out and can I be held liable for the debt when my father passes. Thank you
1 Answer from Attorneys
Re: Trust being used by trustie to rack up dept?
I can't think of a theory which would hold a beneficiary liable for the debt of a trust. A trustee has a fiduciary duty to the beneficiaries. He cannot use the trust for his own benefit in any way. A court will require accounting and indemnity with regard to any malfeasance. Normally, a trustee is required to give a periodic report. The trust document and state law will control what and when and to whom the report must be made. You should consult an Ohio lawyer. Each state has different laws respecting these matters.