Law concerning executor or post-mortem trustee of family trust

[S. F. Ukridge]

Jurisdiction

California

Brief question first, details after:

Is it normal for a beneficiary of an estate to be directed to contact the executor only through the latter's legal representation? In this case, the trustee is my sole co-beneficiary (and brother)

Detailed version:

Our parents had a revocable family trust drawn up many years ago, and recently our dad became the latter of our two parents to pass away. The terms of the trust and the will included therein are standard and direct that the assets should be divided into two equal shares, one for me and one for my sole other sibling. My brother, who is now trustee, and I are the only direct beneficiaries of the will.

Although we live in different cities and rarely see each other, my brother and I are on friendly terms. Since our dad's passing we have been in contact several times regarding the dispersal of the estate, and based on such contacts I have no reason to believe that anything is amiss. However, I recently received a letter from a law firm hired by my brother, as trustee, to administer the distribution, advising me of this event and also that the trust was now irrevocable. Additionally, there was a boldface disclaimer informing me that I had 120 days to contest the will. All the aforementioned notices are required by the California Probate Code, so naturally there's nothing to concern me there.

What does trouble me is another one-page notification that was included in the package. This states that, according to the terms of the trust, my brother has become the trustee, and that if I need to contact him I should do so through his legal counsel, which is a different firm from the above. Say what?!! We texted each other three days ago. A few days before that we talked. Now I'm hesitant even to contact him because of the standard disinheritance clause included in the will, advising that any effort to contest the will, including the choice of executor/trustee, could be grounds for disinheritance. Although I do realize that disinheritance clauses aren't always enforceable, it's not something on which I care to experiment. So now I'm hesitant even to contact my brother to ask about this.

Do I have anything to worry about here?

 

[adjusterjack]

This states that, according to the terms of the trust, my brother has become the trustee, and that if I need to contact him I should do so through his legal counsel, which is a different firm from the above.

Am I reading that correctly? There are two law firms involved. One representing the trustee for the administration of the trust and one representing your brother as an individual?

It's a little odd but I speculate that perhaps your brother is essentially two people in this matter.

One person who has a fiduciary duty to the trust as trustee and another person concerned with his own interests as a beneficiary of the trust.

Speculating some more, your brother may feel that there is a conflict of interests between his personal interests and his fiduciary duties and is trying to ethically separate the two.

Or, it could be something else entirely.

Now that you know what question to ask I suggest you contact your brother's personal attorney and see if you can get an answer.

Understand that once somebody hires an attorney to represent him, that attorney speaks for him to anybody and everybody, hence the term "mouthpiece."

I do suggest that you take more than a cursory interest in what's happening and put all your contacts with either attorney in writing in case there is a need for a paper trail at some point and also make sure that your brother isn't having the trust pay for his personal attorney.

Feel free to come back to this thread (don't open new ones) if you need more discussion.

 

[S. F. Ukridge]

Am I reading that correctly? There are two law firms involved. One representing the trustee for the administration of the trust and one representing your brother as an individual?

This is correct. The first firm administrates the dissolution of the trust and distribution of its assets to the heirs and the second firm, apparently a sole practitioner, represents my brother as trustee.

It's a little odd but I speculate that perhaps your brother is essentially two people in this matter.

One person who has a fiduciary duty to the trust as trustee and another person concerned with his own interests as a beneficiary of the trust.

Speculating some more, your brother may feel that there is a conflict of interests between his personal interests and his fiduciary duties and is trying to ethically separate the two.

This was my first thought and still what I think the most likely reason, but I can't imagine why he thinks he needs to protect himself in this way. Our late dad's financial advisor has already been in contact with me to briefly summarize the investment assets by category and amount, and I have no reason to doubt the numbers. As it turned out, this call took place while the letter described above was in transit to me, judging by the postmark. A day after this call, also, my brother advised me to watch out for emails or letters from a couple of life insurance companies to arrange for my portion of the benefits.

I do suggest that you take more than a cursory interest in what's happening and put all your contacts with either attorney in writing in case there is a need for a paper trail at some point and also make sure that your brother isn't having the trust pay for his personal attorney.

I'll certainly heed this advice and take appropriate action if I fail to hear from the insurers within a reasonable time. If I don't, it could just as likely be for an innocent reason such as a mistaken email address. Though it would be strange if they didn't also try to snail mail me.

 

[adjusterjack]

One thing I need to point out with regard to the life insurance.

If the life insurance lists your name as beneficiary, you will have to deal direct with the life insurance companies and file a claim for yourself.

It's not too difficult. Generally you just need a claim form, a certified death certificate, the original of the policy to surrender, and your proof of ID.

All life insurance companies have a claims department that processes death claims. You'll be able to look that up once you have the company name and policy number, or I can help you with that.

If you have any questions about the life insurance let me know.