r/AusLegal • u/Notcherie • 1d ago
VIC [VIC] Does an estate's executor/trustee have a legal obligation to inform the parents/guardians of a minor who has been left an inheritance under trust?
It's been 8 months since grant of probate, a copy of the will has been seen (via probate records, unbeknownst to executor) and a minor (12yo) has been left a modest inheritance under trust, until age 25.
Executor and trustee named in the will is a sibling of the deceased, who has been known to be very manipulative and deceptive in the past, and relations are.. strained, to put it mildly. Neither the minor nor their parents have been told about the inheritance.
What are the options for the parents in this situation? How concerned should they be about not being informed? And what options are there to protect the child's inheritance from everyone involved (the parents would prefer independent oversight - no sole access by either the executor or themselves), as well as from legal/admin fees eating most of it away?
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u/BlackberryFlaky8983 1d ago
Had a similarish situation where we weren’t aware for 10+ years and only a tip off from a family member meant I went looking for the will at the records office - there our names were (myself and siblings) in black and white. One sibling at the time of death would have been a minor, the rest of us weren’t. We engaged a legal team and they were really the people who won out of it. We ended up with only about 40% of the original amount stated in the will but the principle mattered to us mostly and the executors were made to pay someone and not keep what wasn’t theirs. Honestly, family can mean nothing. It’s so disappointing.
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u/Notcherie 1d ago
Yeah, I'd like to say I'm surprised by the lack of communication from the executor, but knowing what I do of the family history, it's more just.. expected at this point.
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u/Prize_Background_577 1d ago
If the Will states the inheritance is not paid until the person reaches 25 then the executor will be managing the trust holding the funds until the child/adult turns 25. There are usually some conditions where trusts can be paid out for a beneficiary or their guardian prior to them reaching that age.
It's a big commitment to maintain that money in trust for such a long time. I paid out the last of the five trusts I've been managing as executor, thank god, it's not easy to set up and then there's the tax.
Get the full probate records (incl asset list), they are public, let the parents know. If I was the parents I'd get a lawyer's letter notifying the executor they are aware of the inheritance, and make a counter offer about holding the money themselves in trust (or whatever the lawyer can recommend).
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u/Notcherie 1d ago
I think the issue is that they absolutely do not trust the executor to hold it for 13 years, even moreso after not being informed.
But asking to manage it themselves, they expect the same "you can't be trusted" response from the executor. Hence the want for a secure, independent option, that's harder to reasonably argue against.
The assets and liabilities document was.. short. Cash listed only, nothing about funeral expenses etc. The will just splits residuary assets by percentage, so they're not even sure of a number yet (though can roughly estimate, of course).
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u/Prize_Background_577 1d ago
It sounds like they'll have to get a lawyer, if for no other reason that letting the executor know they are watching. It is a lot of work setting up trusts - the executor may not realise. Keep in mind it's much more expensive to chase up the money later than invest in legal advice now. I had a quote of $30,000 to contest a Will in Victoria last year.
Funeral expenses and estate costs are covered without it being mentioned in the Will.
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u/BlackberryFlaky8983 1d ago
They’re not contesting though. So shouldn’t be as expensive.
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u/Prize_Background_577 1d ago
I didn't say they are contesting. This is the basic fee for barristers to take a Will to court, it doesn't matter what the case is and it will not be cheaper, but it could cost more. Do you have a quote for a probate matter before the SCVic, are you a barrister? Too many people on this sub tell OPs to take someone to court over a Will without a clue of how costly this is.
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u/BlackberryFlaky8983 3h ago
Unnecessarily aggressive response - are you ok?
Nope not a lawyer or a barrister but have been in a similar situation as I commented in a different response where we did engage a legal team including a barrister and so I have some personal experience and perspective to offer. Asserting your legal entitlement is not always as complicated (or as expensive depending on the executors response) as contesting a will, as I have understood it.1
u/lucillefive 1d ago
Funeral expenses don’t appear in an inventory because it records date of death assets and liabilities and those didn’t exist yet.
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u/Notcherie 1d ago
Wasn't listed in the will either.
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u/strebor2095 1d ago
Yes, it wouldn't be listed there.
The executor or next of kin would usually arrange a funeral, take an invoice to a bank, get it paid from the deceased's funds to the funeral place.
It's not an explicit power listed in a will, but the executor has a duty to pay for the expenses of the estate, including the funeral.
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u/No_Return3515 1d ago
If probate has occurred, then contact the probate office at the supreme court and they can demand information from the executor. The will will be available
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u/lucillefive 1d ago
You’re referring to asking for an administration account. The court will not usually require this unless it has been more than 12 months from grant and there have been unanswered requests from a beneficiary
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u/Scary_Suspect7052 1d ago
The trustees manage the funds and only have obligations to minor beneficiary not their parents. Practically you should tell parents but legally you dont have to.
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u/Active-Plastic-4281 1d ago
Yes, the trustee has a duty to notify beneficiaries (or in the case of a minor, their guardian), so 8 months of silence is a red flag. First step is a written enquiry from a wills and estates solicitor rather than the parents personally, given the history, and if that gets ignored they can apply to VCAT's guardianship list or raise it with the trustee's professional body if they're not doing it in a personal capacity.