Full question:
My father developed a trust, naming me and my brother as co-power of attorney. My father died in 2003. My mother has had alzheimers since 2000. My brother has been very secretive about many things involving the trust as has the trustee, at US Bank. I have been summarly excluded from most of the decisions (medical, property etc.) concerning the trust. My brother removed many valuable items from my parents house, including my personal collection of baseball cards, and antiques my mother had collected, without my knowledge. The house was sold and demolished without me being notified. The trustee tells me it is easier to deal with one party, than both. My diploma's and other items were in the house. My main concern is for my 17 year old daughter. My father told me verbally, she would be covered in the trust, but I cannot find her name, she is my parents only blood grandchild. As I read the trust, my brother's family gets his 50%, even on his demise. Upon my demise, his family gets my share also, nothing for my daughter. This is just now catching my attention, as I have been distracted by other matters like my divorce and remarriage, etc.
- Category: Trusts
- Date:
- State: Missouri
Answer:
Once a principal dies, a power of attorney is no longer effective. Actions taken outside the authority granted in the document or not in the principal's best interest may lead to claims of breach of fiduciary duty, and an accounting may be necessary. Agents under a power of attorney must not unjustly enrich themselves or waste assets of vulnerable individuals.
Trustees also have fiduciary duties, meaning they must act with the highest good faith when managing the trust. They must keep trust assets separate, maintain detailed transaction records, avoid profiting from transactions that involve the trust, and not transfer trust assets to themselves unless explicitly allowed by the trust document.
Oral promises to provide for someone in a trust may be seen as gifts, which are harder to enforce legally. To enforce such a promise, there usually needs to be proof of delivery and acceptance of the gift. Courts generally require evidence of detrimental reliance to enforce a promise to make a gift.
If a fiduciary duty is breached, various remedies may be available, including petitions for accounting, claims of breach of fiduciary duty, theft, conversion, or fraud. It's unclear if you were appointed as a co-trustee, but the trust document should clarify whether co-trustees can make independent decisions or must agree on all decisions. I recommend consulting a local attorney to review your situation and the relevant documents.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.