Trustees: Who Can You Trust?

Early in my legal career I represented two young women in their early 20s.

Their mother had been killed in a car accident when they were infants. An out of court settlement had been reached and a lump sum of cash had been awarded to each of them.

Since they were "minors" (too young to have legal capacity to act for themselves) the money was given to their father "in trust" to be held until they reached the age of 18.

The reason they had been referred to me was because they had both reached 18 and had asked their father for their money. He had ignored their requests.

I was hired to get their money.

Easier said then done. Their father hired a lawyer of questionable repute who threw up every roadblock in the book, hoping to make us go away.

We eventually learned why. Their money was gone.

Their father had spent the girls' money? some on personal living expenses, some on vacations. He even had given some of the money to a friend for a business that had failed.

Their father was broke. There was no bond (insurance on a trustee's actions) and no money.

I sent the case to the DA's office for criminal prosecution and last I heard there was a plea bargain that included a requirement that he work to earn the money to pay them back.

The moral of the story? Who CAN you trust?

When you set up any kind of trust, a living trust, an irrevocable trust, a charitable trust, any kind of trust, how will you be sure they will perform in an honest an ethical way?

One way is to require a bond. However, often you will see in the pre-prepared "forms" or "kits' that the requirement for a bond is removed.

Often, it is wise to appoint two or sometimes three trustees so they can keep an eye on the others. But then the drawback is that you have a trust that is managed by committee.

There is no easy answer. The answer depends on your particular circumstances.

How much are you worth?

What type of assets do you own?

How complicated will management be?

Will there be management during your life?

What other obligations does the person you've named have (are they raising a young family?).

Even with the case of the two young women, the father had an obligation to give accountings to the court showing what he had done with the money. He never did and there was no one around to make him.

So, don't take the appointment of a trustee too lightly. Talk it over with your family and your lawyer. And be sure to review your document every few years. Family circumstances may have changed where someone no longer has the time to step in if they are needed.

Good luck and until next time,

Phil Craig

P.S. Feel free to forward this on to any friends.

Phil Craig is a licensed attorney and entreprenuer. He started practicing law at age 25 in 1979. He does not take on any more clients, but is advisor to some of the biggest names in the internet world. He shares his knowledge gained over the last 25 years at his Living Trust Secrets newsletter site: click here=========>http://www.LivingTrustSecrets.com

** Attn Ezine editors / Site owners **
Feel free to reprint this article in its entirety in your ezine or on your site so long as you leave all links in place, do not modify the content and include our resource box as listed above.

If you do use the material please send us a note so we can take a look. Thanks.

---

Methods Of Raising Instant Cash

The inability to come up with the necessary cash when... Read More

The Making Money Obsession - Discover The Real Truth

In most societies, we are raised to believe in the... Read More

7 Wonders of the Offshore World

Many people assume that the offshore world is accessible only... Read More

Want Money? You Got It!

Six out of six people who were asked to list... Read More

Wealth Management, Wealth Protection, and Tax Planning

U.S. Supreme Justice Louis D. Brandeis"I live in Alexandria Virginia.... Read More

Saving Money By Spending Wisely

Why is it that the older and richer people become,... Read More

Why Get Rich When You Can Be Wealthy?

"Any fool can rich, the wise get wealthy." Chris WidenerGetting... Read More

Easy Ways to Save $1,000

Vacation season is upon us and it can be tempting... Read More

7 Golden Rules to Financial Prosperity

Not Enough Money?I believe that most people haven't got enough... Read More

The Secret Barrier To Wealth - Underearning

Is the ghost of "Money Past" haunting you? Do you... Read More

The Secrets of World Money Flows and A Simple Way to Understand Them

You can learn the secrets of world monetary flow if... Read More

How To Get Investors And Bankers To Part With Their Money For Your Business

Time and time again entrepreneurs are losing out on getting... Read More

Let Me Inspire You - You Aint Seen Nothing Yet! (PART-1)

You know about compounding right? You understand what pyramiding your... Read More

Financial Planning for Beginners

Financial planning at an early age may seem complicated, however... Read More

What Are Your Beliefs About Money and Wealth?

What is your attitude towards having wealth? Do you believe... Read More

Surefire Ways to Attain Moneymaking Success

You have probably heard other people say that "Money isn't... Read More

Personal Budget Programs

Do you have financial problems? Then a budget is the... Read More

The Three Step Plan To Prosperity

You have $100 in your bank account, your rent is... Read More

From Debt to Financial Freedom

The vast majority of working people are in debt. The... Read More

The 11 Best Money Saving Ideas of All Time - Part 2

At any time in history, no matter what the current... Read More

Turn That Fixed Rate Mortgage Into A Goldmine

When you purchased your home, you most likely got a... Read More

Cutting Costs Can Significantly Increase Your Income

As a work at home Mother, I know the value... Read More

Don?t Work for Your Money, Make it Work for You!

Well, the New Year is around the corner and so... Read More

The 9 Critical Steps To Success In Demolishing Your Money Worries For Good!

Articles on 'How to make money' come a dime-a-dozen. How... Read More

Investors - What Separates the Good Traders from the Bad Traders?

There are many forms of investing online. While I can... Read More

WARNING: The Biggest Lie About Social Security

Like I said, If you are poor and on social... Read More

I Dont Need A Financial Coach To Help Me!

You've been thinking that your financial life could probably be... Read More

Super-charge Your Dream of Retiring Rich with the Roth 401K!

This retirement account is so new and unique that you... Read More

Financial Freedom for Every Employee

You may think you have to be an entrepreneur to... Read More

Self Improvement and Financial Security for the Future

Any successful person, or any anyone interested in self improvement... Read More

Wealth Secrets: Saving Your Way to a Fortune

SCENE 1: Pharaoh has just woken up from a very... Read More

10 Wisdom-Based Wealth-Building Strategies

"It's the business of your life?and you're the CEO!" Gala... Read More

Ben Franklin Didnt Quite Get it Right

When Ben Franklin said "a penny saved is a penny... Read More