UnThreaded | Threaded | Whole Thread (166) | Ignore Thread Prev | Next
Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308367  
Subject: Re: Debt Hell in Oct Date: 11/7/2006 3:27 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 7
SoccerDad9998:

<<<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 http://minneapolisfed.org/Research/data/us/calc/ 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



Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (166) | Ignore Thread Prev | Next

Announcements

TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement