The Trustee and independent thought
As a Trustee how much independence do I have? Here’s a fun hypothetical. Brother Bart has been named as the Trustee of his parent’s trust. Brother Bart has two siblings, Sister Lisa, and older brother Smithers. The family is pretty typical outside of the fact that Smither’s has been in and out of prison his whole life, and Mother and Father were always concerned about Smither’s ability to deal with an inheritance. Mother and Father placed a clause in their trust that restricts Smither’s ability to have any distributions unless he can show 1. three years of monthly negative drug tests, 2. zero criminal activity, 3. a positive balance of at least $3,000.00 in his bank account. Smither’s has approached Bart and asked him when he can get his distribution from the trust. Bart, being intimidated by his older brother has consulted with an attorney because he just wants to ignore the restrictions his parents placed on the trust, and get Smither’s off his back by paying him his share. Can Bart do this? Should Bart do this?