by lajones57 » Fri Jun 19, 2009 12:26 am
I am the beneficiary of a life insurance policy. My step mother put the policy into an irrevocable trust. She is mad at me and told her son not to give me the money from the policy after her death. She can't remove me as a beneficiary, can she legally not give me the money? My share is 1 million dollars.
Posted: Sat Jun 20, 2009 06:50 am Post Subject:
Are the attacments you sent to me - law?
Well lajones57,
I picked up this information for you from an online resource ilrg.com/forms/irrev-trust.html on law and legal profession as it runs in the United States of America.
She attached to the "new" trust a rambling letter and in that she stated that she wants my brother to do everything possible so that I do not get a dime. I wonder how she could move the life insurance from one irrevocable trust to another.
lajones57, if your state allows decanting, which means that the assets from an existing trust can be moved to a new trust then I think there is something you may worry about. Decanting is possible in some circumstances only. However, the terms of the existing trust must specifically give her permission to transfer or decant the assets to a new trust. If the existing trust instrument does not have such specific mention then the state laws would rule. States like New York, Florida and Delaware allow decanting. Which state are you from?
Posted: Mon Jun 22, 2009 06:25 am Post Subject:
I live in Arizona and my step mother has also moved property from a family partnership and given it solely to my brother and step brother. This was property that was promised to me and was in the partnership. Do you know if she can legally do this?
This was in my inbox
Hi lajones57
I am afraid, the trust may be modified or reformed by court in case there is some circumstantial change that weakens the purpose for which the trust was created. But there are only special conditions under which the terms of the trust may be modified. But I can no more say it isn't possible cause i just read it somewhere.
Can you give us more information than what you have given us? Where does your step mom stay? Is she too in Arizona?
Posted: Mon Jun 22, 2009 09:16 am Post Subject:
Hi lajones57,
Though you have posted the following in my message box I'm going ahead to post it in the forums so that other members too can suggest their views.
I live in Arizona and so does my step mother. My step mother is the trustee and my brother and step brother are co-trustees. I am still listed as a beneficiary under the new life insurance trust but it is the written instructions that have me worried. She states she does not want me to have any inheritance from the life insurance. We had an agreement in 2002 that in exchange for another trust, we would allow her to use the funds in exchange for a life insuarance policy. She agreed in writing. The life insurance was in a irrevocable trust. She has also taken property that is very valuable from a partnership of which Ii am still a partner and transferred it all to my brother and step brother. Is she with in her legal rights to do this?
Thank you for your help.
First off, thanks for the updates :)
So, you had given the consent at the time of changing the trust.
Anyway, if your stepmother is both the trustee and the grantor of the trust then I think its a revocable trust and not irrevocable. And, for the same reason, I guess that the previous trust too was a revocable trust. Can you clarify?
Once you put an asset into the irrevocable trust you relinquish your rights over that asset. When with revocable trust you would have the control over the flow of the asset.
Posted: Mon Jun 22, 2009 11:48 am Post Subject: Irrevocable trust
The trust is "irrevocable and unamendable" as stated on page 1 of the trust. It states this several times and it is also the title of the trust... The (her name) Irrevocable Life Insuranct Trust. I never gave consent at the time she changed the trust. I didn't know she had done this until 6 months later. Now she has moved the life insurance to a "new" irrevocable trust and it is here where she states she wants my brother, who is the trustee, not to let me have the 1 million dollars. Everyone involved in this lives in Arizona.
Posted: Mon Jun 22, 2009 01:32 pm Post Subject:
Hi lajones57,
An irrevocable trust can be amended under these circumstances:
lajones57, there must be some clause in the trust by which your step mom has been able to change the terms. Do you have a way to find out?
Posted: Thu Jun 25, 2009 09:56 am Post Subject:
Hi lajones57,
If the trust is irrevocable and unamendable then the trustees are responsible to the beneficiaries of the trust. Your mother can't amend the conditions mentioned in the trust contract. If you are named as beneficiary under the trust the trustees are responsible to protect your interest, failing which they can be challenged by you. Your mother probably doesn't know how the irrevocable trust operates. The only way she can remove you from the benefits is by dissolving the current trust and exclude you from the future one. However, it'd still be wise for you to consult the issue with an attorney.
~Jeremy
Posted: Wed Jul 22, 2009 01:11 pm Post Subject:
lajones57.
Considering the dollar amounts you are mentioning I strongly suggest you gather & arrange all the documents you can get and take them to a Law Firm that specializes in Estate, Trust fund, and inheritance Law in your State.
Now, not later, Now.
Posted: Mon Nov 30, 2009 07:16 pm Post Subject: irrevocable trust
Its irrevocable and she cant change it. You need to take it to court you may be able to make a claim against her.
Add your comment