Consumer complaint received 2022-01-21
Product: Checking or savings account — Other banking product or service
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: MUFG AMERICAS HOLDINGS CORPORATION ()

MUFG Union Bank ( UB ) served as Trustee to the XXXX XXXX XXXX ( Trust ) from XX/XX/XXXX to XXXX. As Trustee, UB failed to carry out its fiduciary duties with due care, skill & diligence in the interest of the beneficiaries. Hence, trust assets declined in value, unnecessary expenses were incurred & income from income-producing assets was forgone. The Trust consisted of stocks, real estate investments in CA & NY, and personal property. When UB took over the XXXX, XXXX XXXX ( the main beneficiary ) was living in an assisted living facility. Had UB managed the XXXX properly, all income generated by the Trusts properties etc. would have been sufficient and used to support her care. However, 1 ) UB failed to invest as an ordinary prudent person would do ; 2 ) Assets were not used efficiently : houses that were once income generating were no longer generating income yet continued to be held in the XXXX ; assets such as cars were not sold, storage areas were not liquidated ; 3 ) Unnecessary exorbitant costs were incurred by UB including legal counsel to make simple decisions. UB shirked its fiduciary responsibilities. 
New York ( NY ) Vacation rental houses held in the XXXX were neglected and unable to generate income yet remained in the XXXX. One of the houses typically generated XXXX $ XXXX. season. 
Tangible Personal Property ( TPP ) : 6 mos. after UB took over as Trustee, UB arranged for personal property to be evaluated in the ( 2 ) NY properties. UB arranged for personal property in 3 houses ( XXXX XXXX XXXX SD ) ; XXXX ) to be stored. The service used by UB for the SD house was not detailed nor were photos provided. On XX/XX/XXXX a binder was provided by the trust manager asking the beneficiaries to choose the items they wanted. Meanwhile storage charges mounted. After the initial exchanges on the TPP & attempts to minimize costs, UB retained legal counsel, evading its duties & responsibilities as Trustee to handle personal property & real estate issues. 4 cars were held by the estate when UB was named Trustee. In an email of XX/XX/XXXX, the trust manager said that the cars would be sold. The cars remained in the XXXX. They were of no value by the time the estate was settled. 
General inefficient handling of the trust : UB did not handle trust assets judiciously by failing to deal with issues in a timely manner. Terms of trust notice were received in XX/XX/XXXX & were returned on XX/XX/XXXX. The liquidation of the trust was held up for years as 1 asset was being decided in the court system. Assets should have been distributed. UB held up the liquidation due to its inability to deal with 1 trust asset all the while collecting a management fee. Beneficiaries reached agreement in XX/XX/XXXX & closing of the trust administration was to begin. In XX/XX/XXXX UB asked for {$75000.00} in extraordinary costs without any explanation as to what this corresponded nor why their usual percentage-based fee was not sufficient. An explanation was received on XX/XX/XXXX indicating that the costs incurred were indeed under their purview. Time sheets reflected changes for work on a petition related to 1 asset, when no petition was filed (! ). They reflected services related to UBs 2 changes in counsel, which is not a proper charge to a trust estate. Also included was {$10.00} 000 to send 3 UB employees for 1 week to NY to clean out the 2 houses. This trip was questioned in an email to the trust manager on XX/XX/XXXX. Dealing with residences and personal property is a common task for a trustee. This Trustee was aware before taking the job. This task could have been done by a bonded independent NY-based contractor. 
UB dragged out the negotiations on the Settlement Agreement and Mutual Releases so that they could collect their fees. UB insisted that language be included in the agreement indicating that the beneficiaries agreed to their legal fees and agreed to release them of any wrongdoing or mishandling of the trust before any distribution of assets would be made.