Question

Aaron, owner of ABC Development LLC (ABC), filed a lawsuit against XYZ Construction Company (XYZ). The suit claims XYZ used substandard materials for the construction of 201 homes. After four years of arbitration, the case was finally settled for $50,000 in mid-2018.

Over the four year period, there were partial payments from XYZ :

	Partial Settlement	Disburse- ments	Funds Remaining
2015	5	1	4
2016	5	2	3
2017	5	3	2
2018	35	29	6
	50	35	15

The funds were wired to the trust account of the attorney for ABC. After each payment was received, the attorney would pay off ABC’s debt, including subcontractors, accountants, other attorneys, engineers, and architects, etc. The last disbursements were made in October 2018. The remaining funds were finally released to ABC in December 2018.

How would you advise Aaron?

Answer 1

As the case was proven good, against XYZ Construction Company by The Aaron, owner of ABC Development LLC (ABC), in the court of law for using substandard materials for the construction of 201 homes, and finally the case settled for $50,000 in mid-2018. As the funds were wired to the trust account of the attorney for ABC. After each payment was received, the attorney were paying off the ABC’s debt, including subcontractors, accountants, other attorneys, engineers, and architects, etc. The remaining funds were finally released to ABC in December 2018.

According to my view, Trustees responsible for managing assets involved with the estate of another individual according to a trust agreement. One of the important functions of the trustee is distributing the trust assets according to the wishes of the creator of the trust (trustor) as set forth in the trust agreement. With proper planning, a trustee will be able to navigate the distribution of trust assets with the assistance of a bank, lawyer, or financial adviser either appointed by the trustor or hired by the trustee to manage the legal details.

The following checklist must be satisfy when distributing trust assets:

1)Familiarize yourself with all aspects of the trust agreement. The trust agreement will include vital information.

2)Contact all beneficiaries listed in the trust agreement. You should send an official written communication stating beneficiaries that the event the trustor specified as triggering distribution has occurred.

3)Inventory the current state of the trust itself. This means conducting a thorough inspection of all trust assets, contacting bank accounts and confirming balances, and ensuring that all items listed in the trust agreement are accounted for .

*Conclusion*

. Hence i would advice Aaron that they must consult with others prior to distributing trust assets and making their decisions transparent to everyone, you may also be protected from charges of breaching your duty as a trustee filed against you by beneficiaries upset with the distribution of trust assets.