Who can change the terms of a loan froma Trust?
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Who can change the terms of a loan froma Trust?
I had a loan from my grandma; the original agreement was that payments would stop when she passed away. She passed last month and I received a letter from my aunt (the trustee) stating the terms were changed and I am to contiue making payments to the trust. Can she do that?
Asked on March 8, 2013 under Estate Planning, California
Answers:
Catherine Blackburn / Blackburn Law Firm
Answered 11 years ago | Contributor
Do you have a written agreement with your grandma or with the trust? If so, you can enforce that agreement.
If you do not have a written agreement, then you have to look at the written terms of the trust. You can look at the original trust to see if if reflected the terms you understood. You can also look to see who changed it and when. Usually, only the settlor (the person who created the trust) has the power to change it. Sometimes, a trust protector can change the terms. The trustee may have discretion about how to administer or enforce the trust, but usually does not have the power to change its terms. you need to see the trust itself to find out if your aunt is correct.
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