Question

I’m 60 years old and I don’t have any savings. I do have $20,000 in an online investment account. Each month, I get a check from a holding company that owns 24.75% of it. Plus, there’s a quarterly check from my real estate company, but honestly, I’m not sure how much that is. My brother, who’s the trustee of our HEMS (Health, Education, Maintenance and Support) Standard Trust, is uncertain about what he might receive from it. Should I think about consulting a planner or an estate planning attorney? My finances are tight, but I feel like I really need some guidance.

Answer

First things first, you should investigate if there’s any waste or mismanagement related to your trust. It’s likely that you would benefit from consulting both a lawyer and a financial advisor. It might be worth looking into resources that help match you with a fiduciary advisor.

You’ll want a thorough accounting of the trust’s income and expenses, ideally reviewed by a neutral third-party accountant. If you suspect your brother isn’t handling the trust’s assets appropriately, getting in touch with a litigation attorney who specializes in trusts and estates could be wise, according to attorney Jonathan Levolitz.

Your brother, as trustee, has a responsibility to act in the best interest of all beneficiaries. He should prioritize fairness and transparency regarding how the trust is being managed. This means you deserve to understand how your funds are being utilized, ensuring no one is unfairly withholding money for their own benefit, says Patrick Simasko, a senior attorney.

It could also be beneficial to examine the underlying real estate business and what your brother might be drawing from the trust. There may be a need for restructuring; perhaps selling off certain assets to invest in more stable income-generating options could help. Per Levolitz, it’s the trustee’s role to maximize the value of the trust’s assets.

Ultimately, consulting both a financial advisor and a real estate attorney is advisable. The advisor can assess if your current investments are appropriate. Tensions might arise with your brother, but a professional can provide an objective evaluation of your portfolio, notes Robert D. Steele, a fiduciary wealth partner.

If it’s found that your trust isn’t adequately diversified, speaking with an estate or trust attorney should be your next step. Start by reviewing the trust agreement—understanding your rights is crucial, especially regarding whether HEMS serves as a minimum or maximum for distributions. If you believe the trustee isn’t complying with required standards, you have the right to request their resignation, according to Steele.

Should your trust allow for the removal of a trustee, consider that route. Though it’s becoming more common, it wasn’t always the case. Changes in IRS rulings have altered this landscape, but know that the worst-case scenario may involve legal action to replace the trustee, which can be costly.

Have you thought about whether your brother might simply be unaware of your concerns? Clear communication is vital. If long-time family dynamics cause misunderstandings, a lawyer could advocate for you and help resolve any issues. If your attorney isn’t effective, filing a complaint in probate court might be your next move, allowing a judge to oversee the trust’s administration, as suggested by Simasko.

To find skilled estate planning and trust attorneys, you can check out directories like Martindale-Hubbell, which lets you filter by location and specialty. Make sure to choose a lawyer specialized in trusts and estates who can discuss fees transparently.

If you’re in search of a certified financial planner (CFP), the National Association of Personal Financial Advisors provides a tool to locate professionals based on zip code and specialization. Alternatively, other resources also offer access to CFP directories. Look for someone with experience assisting beneficiaries similar to your situation and prepare relevant questions for your consultations.