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Executor Trustee


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#1 makinganattempt

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Posted 18 March 2012 - 09:38 AM

An exacutor trustee who used to work in the title company industry has been placed on disability because she claims she can no longer  mentally do her job (can't remember her duties etc). She claims Her mental test scores were a negative number. She is collecting Disability insurance. Physically there are no signs of disabilty although she has MS but you wouldn't know it unless you knew her history.  Her memory seems no different then mine and we are both around 54.


 Should she be removed from the position as trustee because the duties would be similar to those she was expected to do at the tiltle company?  If she exepts money for disbursing the trust while on Disablility would it be considered insurance fraud as she would be accepting money for doing a job that she claims she cannot do (disbursing the trust) as well as having an income while on disabliity?



#2 knort4

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Posted 19 March 2012 - 04:13 AM

Look at the trust document to see if it names a successor trustee.  If a successor trustee is named, the executor trustee will probably agree to voluntary resign if the successor trustee is notified and asked whether the successor would agree to assume the trustee position.

#3 pg1067

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Posted 19 March 2012 - 08:48 AM

makinganattempt said...

Should she be removed from the position as trustee because the duties would be similar to those she was expected to do at the tiltle company?

If Job X requires the performance of Duties A, B, and C, and Job Y requires the performance of Duties D, E, and F, which are "similar to" Duties A, B, and C, and if the person in question is unable to do Duties A, B, and C, then it seems like a foregone conclusion that she also is unable to do Duties D, E, and F.  Of course, that all depends on how "similar" Duties A, B, and C are to Duties D, E, and F.


makinganattempt said...

If she exepts money for disbursing the trust while on Disablility would it be considered insurance fraud as she would be accepting money for doing a job that she claims she cannot do (disbursing the trust) as well as having an income while on disabliity?

First of all, this question assumes that one is prohibited from having any other income "while on disability," which isn't necessarily true.  It depends on the applicable state law and the terms under which the disability income is paid.  Second, this question ties into your first question.  What does "similar" mean?  "Similar" is not the same as "identical."  For example, swimming is similar to lifting weights in that both are forms of physical acivity.  However, just because I cannot lift weights does not mean that I am also unable to swim.



#4 pg1067

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Posted 19 March 2012 - 08:52 AM

knort4 said...

If a successor trustee is named, the executor trustee will probably agree to voluntary resign if the successor trustee is notified and asked whether the successor would agree to assume the trustee position.

And how exactly do you purport to know what this completely unknown person "will probably" do?


Also, I forgot to mention in my prior response that there is no such thing as an "ex[e]cutor trustee."  Estates have executors (sometimes called administrators or personal representatives), and trusts have trustees.  It's not clear whether the person is talking about an executor of an estate or a trustee of a trust (although I do note that, at one point in the post, the poster also used the term "trustee" by itself).



#5 makinganattempt

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Posted 19 March 2012 - 01:26 PM

The person managed a title company also working as a title officer and worked in a bank as a loan agent at one time. it is my understanding that she worked in the real estate industry as well. She left her job claiming that she could not concentrate enough to do the paperwork, research etc required to perform her duties. At one point she was just to answer phones and take messages and claimed that was to much because she couldn't take the messages. She is on full disability  because she is unable to concentrate at her job claiming that simple things such as adding, subtracting and remembering what she just read on a page of a book is just "impossible".


. She will be administrating the trust being completely in charge (sorry not sure what she would be called# - handling the disbursement of the real estate and personal property. Making sure all is in order. She will hold power of Attorney. She will be handling all the insurance policies as well as stocks, bank accounts etc. It is not a large estate but does hold several hundred acres and a bit of cash that is to be divided three ways. There is also livestock and equipment that is to be divided.


At this point she is trying hard to get her personal property refinanced by having her parents #who she will manage the trust for# co-sign on the loan. The other children worries about her trying to transfer the debt onto her folks property so the other beneficiaries will be paying for her personal debt. Her father is close to 90 and mother is about 80 and the daughter who will be in charge, has used the MS #although in remission for over 10 yrs# every time she wants something and the parents are worried that any changes might kick the MS in again as she claims. The MS "bothers" her any time change has been mentioned and she cries until the parents give in #yes...this is a 54 yr old woman#


 I have only helped handle one estate # I did the paperwork and research while the trustee got the credit and the pay). It seemed to me like I would have had quite a bit of trouble doing it if I was mentally disabled to the point I couldn't remember what I had read or couldn't keep records of what was being handled.


This is in the state of Montana. I have read a few cases of disability fraud where people were working and collecting disability. I realize that being paid to disburse the trust is another form of income but It seems to me that the same skill - bookkeeping, reading, record keeping adding, subtracting, would be used in administrating a trust...and if you are able to do such duties for a trust then there should be no reason you couldn't be working in some kind of a job. And if you can't do the duties you should remove yourself from the position.


Hopefully this gives you the answers to the questions you had and maybe you will be able to answer my questions. Thanks so much.



#6 makinganattempt

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Posted 19 March 2012 - 01:42 PM

 it is a Trust that she will be handling. I'm sorry, I am not sure what she would be considered. I just know that she is the only person that will be in charge of it once both of her parents die. Her fathers health is not the best right now and after 60 yrs of marriage I don't think her mother will last long after her father is gone. The parents have worked hard all their lives and trust everyone that they shake hands with. The daughter has used just about half of her parents savings while waiting to be placed on disability, yet never touched her own savings or retirement accounts. And now cries about having to use her savings account because the parents stopped paying the daughters house payment when she started receiving disability.


Her brother lives on the property and takes care of his parents home, shop, livestock, machinery and another business that is owned by him and his parents jointly. The other sister lives in town.


Probably to much info but kind of gives you an idea of what is being dealt with. Thanks for any advise.


 


 






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