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How does duty to inform come into play with gross administrative errors?

Ocala, FL |

The successor trustee (ST) of a decedent's living trust (LT) liquidated IRA accounts and deposited funds into a checking account; my understanding is that this will disqualify the distribution as an inherited IRA rollover. We have been making inquiries of the ST on various matters and she has suddenly gone silent over the last 3 weeks. If she has realized this is indeed an error, what is her duty to inform beneficiaries of this?

BTW, we are seeking a litigation attorney at this time, but geographic distance (CT/CA) is hindering our efforts. We are unsure of what kind of communication, if any, we should be having with ST in the absence of legal counsel.

Attorney Answers 2


  1. The terms of the trust control what information and when it needs to be provided. If the trustee is still under court supervision, then the judge is the appropriate person to approach about what has gone on. What i dont understand is if the IRA is a rollover, who is it rolling over to? Only a spouse can get those funds as an IRA retirement fund, all other recipients get that as a distribution and it loses its retirement status.

    The answers given are limited to the facts as given and presumed by the answer itself. Without seeing actual written documentation or having a conference to more fully explore the issues, this short answer has only limited application. Make sure to seek legal counsel and provide all documentation to get assistance in making informed legal choices. Bstein@dcfsz.com, 305 377 1505


  2. You BADLY need to involve a CPA and/or tax attorney on this, RIGHT AWAY. It *may* be possible to correct this mistake, if in fact it was a mistake. But time is very much of the essence.

    James Frederick

    ***Please be sure to mark if you find the answer "helpful" or a "best" answer. Thank you! I hope this helps. ***************************************** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and Ingham Counties. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in your state. The law changes frequently and varies from state to state. If I refer to your state's laws, you should not rely on what I say; I just did a quick Internet search and found something that looked relevant that I hoped you would find helpful. You should verify and confirm any information provided with an attorney licensed in your state. I hope you our answer helpful!

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