Senator Dianne Feinstein (D-Calif.) has accused the trustees of her late husband’s estate of financial abuse in a recent legal filing, calling for their suspension as administrators of the account.
Feinstein, 90, claims that the three trustees of the Richard C. Blum Revocable Trust — Michael Klein, Marc Scholvinck, and Verett Mims — are withholding funds from her late husband’s estate, to which she is entitled. Her husband, Richard Blum, was a reported billionaire at the time of his death last year.
Within the filing, Feinstein accuses the trustees of “wrongfully withholding distributions to which [Blum’s] Trust entitles her in bad faith and diverting assets that they should have used to fund” her marital trust.
Feinstein asserts that upon Blum’s passing, $5 million was to be disbursed into her trust in quarterly installments. According to her, this payment has not been made and she has not received any disbursements.
Feinstein’s filing demands the suspension and removal of the trustees for allegedly breaching their fiduciary duties, including their duties of loyalty and impartiality.
The remainder of the trust is due to Blum’s three daughters. According to the San Francisco Chronicle, Blum’s children will each receive $22 million from the trust if Feinstein dies without receiving the $5 million intended to transfer to her trust.
Feinstein’s filing states “The Trustees’ inaction shows that they intend to benefit Richard Blum’s daughters, who stand to inherit millions of dollars that should go to Senator Feinstein if the Trustees never make the required distributions to her. The Court must hold the Trustees accountable for their breaches of trust.”
Feinstein has lodged three lawsuits related to the situation so far, with hearings for the cases scheduled for August and September.
The ongoing legal battle underlines the potential conflicts and complexities that can arise in estate administration, especially in cases involving substantial assets and multiple beneficiaries.