No. of Recommendations: 7

<<<Doesn't the trust have provisions for changing the trustee to someone who manages it better than the current trustee? It seems to me that if you are saying 'whichever bank currently holds the trust' then there must be a way for the trust administrator to change, so DW may want to look into that if she is not getting adequate performance and customer service. However, inadequate customer service does not mean they are inadequate because they don't give in to her requests, so she needs to have a better reason than that.>>>

"Lots of examples could be provided to demonstrate that this goes way beyond denied requests. Most importantly it is about DW being turned into an account # with very large full service broker type fees and investment decisions being made without knowledge of her maritial status, kids or no kids, employment, need or no need for medical care and so on. She did consult a lawyer and was advised that she could not transfer it without legal action that risked pretty much the entire value of the trust.

Please understand that DW feels she is battling the trust so that either a) the value does not dwindle away do to poor management or b) the value does reache something like 1 million but she is in the very akward postion of still being alive and not being able to pass any money along to kids or grand-kids. It is an emotionaly difficult thing for DW to wrap her thinking around when for many years she was told he could be used for the kids college and retirement."

I have been quiet in this thread and I know that you want to not to talk about the trust as a courtesy to you wife, so all the following are asked as rhetorical questions.

Have you or your wife seen the trust agreement?

If yes, what does it say?

Who created the trust? Every trust requires a grantor or settlor.

Is this person still alive?

Can the trust still be amended?

Why was the trust created? What was its purpose?

Are there other beneficiaries of the trust?

Who controls appointment of a substiture or replacement trustee?

How large was the trust when it was started?

How has it performed over the years?

As someone else noted, (1,400*12)/170,000 = 16,800/170,000 or a 9.88% withdrawal rate, way above "safe" for any extended period, and even more so depending upon the fees that are being paid by the trust.

Also, IIRC, you said the 1,400 month has been the same amount for 15+ years. The handy inflation calculator at tells me that $1400 in 1990 would require $2169.09 in 2006. Inflation has seriously eroded purchasing power, no wonder y'all are feeling pinched. Conversely, $1400 in 2006 is the equivalent of $903.60 in 1990.

(1400 - 900)/1400 = 500/1400 = .357 or a 35.7% reduction in purchasing power.

If the payments to you were were adjusted for inflation, then (2170*12)/170000 = 26040/170000 = 15.29%

And all of this ignores the 20-30k withdrawal every 5 years for a new car.

I do not envy you the choices that you will need to make.

Good Luck, JAFO

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