After her aunt passed away, a client from Brooklyn called me. She and her aunt had been very close. For years, her aunt had said, “Don’t you worry, I’ve made sure you’ll be taken care of.” But after the funeral, there was only silence. Her cousin, named as the trustee, wasn’t returning calls. She suspected she was named in her aunt’s trust, but she had no documents and no information. She felt powerless, and her grief was now compounded by uncertainty and a growing sense of distrust within the family.
This situation is common. Unlike a will, which is filed with the Surrogate’s Court and becomes a public record upon probate, a trust is a private agreement. This privacy is one of its greatest strengths, but it can become a wall of silence when a trustee fails to communicate. If you find yourself in this position, you are not without recourse. You have rights, and the law provides a path to clarity.
The Trustee’s Fiduciary Duty: Your Right to Know
A trustee is not a monarch. They are a fiduciary—a custodian appointed to act in the best interests of the beneficiaries. This is the highest duty recognized by law, demanding loyalty, prudence, and transparency. This duty requires the trustee to keep beneficiaries reasonably informed about the trust and its administration.
While a grantor (the person who creates the trust) can place certain limits on the information shared, they cannot completely eliminate a trustee’s duty to account for their actions. In New York, the law presumes a beneficiary has a right to know they are a beneficiary. The trustee should provide you with notice, a copy of the trust agreement—or at least the portions relevant to your interest—and regular updates on the trust’s assets and activities.
When a trustee fails to do this, they are failing in their fundamental role. The silence my client experienced from her cousin was not just poor etiquette; it was a potential breach of his fiduciary duty. The law anticipates such failures. Under New York’s Surrogate’s Court Procedure Act (SCPA) § 2102, a beneficiary can petition the court to compel a trustee to supply information about the trust. This is not a hostile first step, but it is a powerful legal backstop when informal communication breaks down.
When Communication Fails: Practical Next Steps
Before petitioning a court, the prudent approach is to create a clear, formal record of your attempt to get information. If you suspect you are a beneficiary and the trustee is unresponsive, a simple phone call is no longer sufficient. You must be more deliberate.
I typically advise clients to begin with a formal written request sent via certified mail. This letter should be polite but firm. It should state your relationship to the deceased, your good-faith belief that you are a beneficiary, and a direct request for a copy of the trust document. This is not an accusation; it is a request for the information you are entitled to. Creating this paper trail is critical if the matter later requires court intervention, as it demonstrates you made every reasonable effort to resolve the issue directly.
If the trustee ignores or refuses this formal request, the next step is often for an attorney to send a demand letter on your behalf. An inquiry from a law firm often carries more weight and signals that you are serious about understanding and asserting your rights. This step can prompt a reluctant trustee to cooperate, as most wish to avoid the expense and scrutiny of a court proceeding.
Reading the Document: What to Look For
Assuming the trustee provides the trust agreement, you now have the central document that outlines the grantor’s intentions. These are dense legal documents, but there are a few key sections to focus on:
- Beneficiary Designations: The document should clearly name the beneficiaries. You will need to see if your name appears, either as a current beneficiary (entitled to distributions now) or a remainderman (entitled to the remaining assets after a certain event, like the death of another beneficiary).
- Distribution Standards: Pay close attention to the language governing how and when the trustee can distribute assets. Is the trustee required to make distributions for “health, education, maintenance, and support” (a common standard known as HEMS)? Or do they have “sole and absolute discretion”? This language defines the boundaries of the trustee’s power and your access to the funds.
- Reporting Requirements: The trust may specify how often the trustee must provide an accounting to the beneficiaries. This can range from annually to never—though as mentioned, the law provides a backstop if the document is silent.
Understanding these terms is fundamental. They are the rules of the road for the trust’s administration and the foundation of the relationship between you and the trustee. If any part of the document is unclear, it is essential to have it reviewed by counsel who practices in this area. Stewardship.
If you find yourself waiting for information that is yours by right, the law provides a pathway to answers. The first step is a formal, written inquiry. For assistance in reviewing your situation and drafting this request, schedule a consultation with our office.
