Question:
Are beneficiaries of a trust governed by Indiana law, but administered by an entity in Ohio, permitted to get written information from that institution with specific regard to “closing” or “distribution” fees, which will be charged on closing the trust? Is there anything in Indiana law that would designate how final fees are to be assessed if there are multiple beneficiaries, each directing the distribution? In other words, is closing the account a single assessed fee, or is there a separate fee for each beneficiary?
Response:
Unfortunately, I don’t know about Indiana law in particular, but I can answer your questions in a general way.
First, the trustee should provide this information to beneficiaries if they request it.
Second, I’ve never heard of closing costs being charged to beneficiaries or being dependent on the number of beneficiaries. Those institutions that do charge closing costs typically charge a single flat fee.
Third, this information should be readily available. If it’s not on the institution’s marketing material, they should provide it readily to you as a beneficiary or as a prospective client. For that matter, it’s a good question to ask any potential trustee before engaging them.
Fourth, this is probably not a question of state law, though the law may require that the fees be “reasonable” and that they be shared with the beneficiaries. The institution, in your case, probably must comply with both Indiana and Ohio laws.
