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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal>A nearly hypothetical situation: PC, unrelated to grantor, is trustee of grantor’s trust. Grantor lives alone, is very fragile (possibly no longer competent), and doctor has said 24 hr care is necessary. Son stepped in to help grantor, hired about a dozen caregivers to provide care 24/7, and asked trustee to transfer money to grantor’s bank account where son has signature authority so son can pay caregivers. PC (trustee) prefers to let son handle logistics and son prefers to oversee dad’s care. Some bills come to trustee, some bills are being paid by son from grantor’s personal account after transfer of trust funds. This has been going on for about a year. There is another child who says she agrees with what son is doing. Both kids are contingent remaindermen of the trust. Trust is typical grantor trust to take care of grantor for life then remainder to children.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>And purely hypothetical questions: Does PC have an obligation as trustee to report to IRS because trust money is being used to pay for domestic help? Or is it grantor’s sole responsibility because trust money ran through grantor’s account? Any other issues for trustee? Is it okay to delegate management of care to grantor’s child including payment of expenses? PC is wondering about possible personal liability.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Lenard L. Wittlake, PLLC<o:p></o:p></p><p class=MsoNormal>Attorney & Counselor at Law<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>