Can a co-trustee and beneficiary of a share of a Family Trust get into trouble if they drain the Trust acct?

Question

I am talking about taking personal loans for thenselves before the money is distributed to the remaining beneficiaries. What does it mean when an atty says the other co-trustee needs to re-establish the Trust Bank acct? What can happen?

Answer 1

a trustee has a legal obligation to act in the best interest of ALL beneficiaries. Usually the trust deed also requires co-trustees to act in unison. breech of trust is treated very seriously by the courts. the other beneficiaries could have a good claim for damages and restitution. If fraud is involved, that is a crimal act and can be punished by a gaol term.

Answer 2

.  Big trouble.  Did you read about the estate of Mary Astor in New York. Her son drained the estate and even forged wills.  He got removed from the trust.