Trustee Dispute Resolution Steps

Summary

In Indiana, trustees must act in good faith and in the best interests of beneficiaries. If a trustee is withholding trust distribution, they may be at fault. Gather all relevant documents, request specific emails and evidence from the trustees lawyer, and prepare for your hearing. Consider self-representation if legal aid is unavailable. Contact local bar associations or law schools for pro bono services. Document all communications and address any allegations factually.

Full Conversation

In an email between two parties who share ownership of a deceased parents home, one party states they are willing to let the other reside there but that they must create a formal agreement and plan to do so in addition to completing their duties as trustee with transparencey. The other party ignored requests to come up with a formal agreement, and has been withholding distribution of the trust stating that the other party is responsible because they stated they could move in and then recanted. Who is at fault?
It appears that the party withholding the distribution of the trust might be at fault, as they ignored the requests for a formal agreement and transparency in their trustee duties. Indiana law requires trustees to act in good faith and in the best interests of the beneficiaries.
Were there any specific terms set in the trust regarding the distribution and duties of the trustee?
Article Vi states the trustee under the agreement shall have all the pwoers enumerated under the indiana code and any other power granted by law to be exercised without the necessicity of court approval. As trustee, in their sole deiscretion, determine the best interests of the beneficiaries. Powers are to be construed in the broadest manner possible and shall pertain to both the principal income but not limited to: retain any property received wtihout liability for loss due to lack of diversification or lack of diversification, to invest and reinvest trust estate in any kind of real or personal property without regard to any law restricting investment, to sell any property for cash or credit at public or private sales, and to take any action with respect to conserving or realizing upon the value of any trust property with respect to foreclosures...
Indiana law requires trustees to act in good faith and in the best interest of the beneficiaries. The trustee has discretion but must still be transparent and fair.
- Trustees must act in the best interests of the beneficiaries.
- Trustees should be transparent in their actions.
- Indiana law mandates trustees to exercise good faith.
Have you tried any mediation or legal intervention to resolve this issue?
I have offered mediation and have filed petitions with the court. The judge is not overseeing the case actively, but has scheduled a hearing for January 22nd. The mediation offer was ignored, and the lawyer for the trustee stated if I were willing to honor a perceived verbal agreement with the trustee regarding letting her purchase the house that "this could be wrapped up quickly".
****, it seems like the trustee might not be acting fully in good faith and transparency. Given the current situation, it might be beneficial to prepare for the January 22nd hearing and gather all relevant documents and correspondence. Additionally, consider discussing the perceived verbal agreement with your lawyer to clarify its terms and implications.
Is there anything specific you would like to know about preparing for the hearing?
The lawyer for the trust states she is in possession of an email from January of '* in which I state she can reside in the home. I am not in possession of this email. I am in possession of several other emails throughout the year requesting a formal agreement be made and my expectation that the trust be distributed in its entirety before selling the home. What should I do here?
****, it sounds like you are in a challenging situation. Here are a few steps you might consider:
- Gather and organize all the emails and documents you have.
- Request a copy of the January '* email from the trustee's lawyer.
- Consult with your lawyer about the discrepancy and how to present your case.
Have you already shared all your documents with your lawyer?
i can not afford legal representation
****, it sounds like a tough case. Here are some steps you can take:
- Gather all your emails and documents.
- Request the January '* email from the trustee's lawyer.
- Prepare a clear timeline of events and communications.
- Represent yourself at the hearing, focusing on the trustee's lack of transparency.
If you need free legal advice, you might want to contact Indiana Legal Services for assistance.

Indiana Legal Services


Phone: (*) *-*
Website: www.indianalegalservices.org

Have you considered reaching out to any legal aid organizations for free advice?
i have been declined due to not meeting income requirements
****, you might want to consider these steps:
- Contact your local bar association for pro bono services.
- Look for legal clinics at nearby law schools.
- Prepare all your documents and represent yourself at the hearing, focusing on transparency issues.
Would you like more information on how to represent yourself effectively?
yes, and I have another question. The trustee alleges that I have "threatened her continuously" and that my "dishonesty is what has held her up from doing her job". We have not been in contact directly for over a year, and I can not find any email in which threats have been issued or in which there was blatant dishonesty. What steps should I take? I chose not to respond to those allegations as I did not want to argue in that manner, but I am concerned that failing to respond could show agreement?
****, here are some steps you might take:
- Document all communications and lack thereof.
- Request specific evidence of the alleged threats from the trustee.
- Prepare a clear, factual response to the allegations.
- Focus on the trustee's lack of transparency and good faith at the hearing.
Would you like more tips on how to prepare your response for the hearing?
yes. Should I send any information requests to the trusts lawyer?
****, yes, you should send information requests to the trust's lawyer. Specifically, request:
- A copy of the alleged January '* email.
- Evidence of any alleged threats or dishonesty.
Would you like more tips on drafting these information requests?
yes
****, for drafting your information requests, consider the following tips:
- Be clear and concise in your requests.
- Specify the documents you need (e.g., the January '* email, any evidence of threats or dishonesty).
- Use formal language and maintain a respectful tone.
Would you like a sample template for your information request?
yes
****, here's a sample template for your information request:
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[Your Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date]
[Trustee's Lawyer's Name]
[Law Firm's Name]
[Address]
[City, State, ZIP Code]
Dear [Trustee's Lawyer's Name],
Subject: Request for Specific Information and Documents
I am writing to formally request the following documents and information related to the trust administration:
*. A copy of the email dated January '*, which allegedly states that I agreed to let [Trustee's Name] reside in the home.
*. Any and all evidence of alleged threats or dishonesty attributed to me.
Please provide these documents at your earliest convenience. If there are any issues in fulfilling this request, kindly inform me in writing as soon as possible.
Thank you for your cooperation.
Sincerely,
[Your Name]
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Would you like further assistance with any other aspect of your case preparation?