QUESTION

Can an adult child who is executor of an ill parent's estate contest a no-contest clause in a living trust?

Asked on Aug 12th, 2012 on Estate Planning - California
More details to this question:
If so, on what grounds? And if same parent with no-contest clause has been willingly giving money & paying bills for another adult child off-and-on long before parent ever became ill, can the executor challenge the no-contest will/disinherit later because of $$ help the parents gave her? Ill parent is of sound mind, speaking, functioning still. The executor is financially very successful, but the other adult has recent foreclosure, divorce etc... They do not get along, or have much of a relationship at all and never did as they have different fathers and a big age gap between them. Both sisters routinely help parent with grocery shopping, doctors appts, etc. The executor recently attacked the other sister verbally & viciously in front of parent, name calling and hateful words, and does not agree with parent helping the other sister. The executor is WORKING with estate lawyer of ill parent to track down properties & assets of said parent's deceased spouse (who passed away recently), 'tying up loose ends' and taking over parent's home paperwork, paying parents bills from parents own money, prepping to be executor, while ill parent knowingly continues to help the other sister pay her own bills. Can this financial help be used against the other sister later to change the no-contest clause or challenge their equal inheritance? Ill parent with no-clause trust says it's her money and she will help daughter if she wants to like she has had to for some time.
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3 ANSWERS

Elder Law Attorney serving Hollister, CA at Charles R. Perry
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This is far too complex to answer in an e-mail. You need to contact a lawyer who specializes in trusts and estates. I would note, however, that if a right to property in the trust has not vested, the future beneficiary probably has no right to challenge the trust at this time. "Vesting" means that there is no event that must happen before the right to trust income or a trust distribution matures. In the typical living trust, the rights of children do not "vest" until both their parents have passed away but this trust may be different. Again, contact a lawyer to advise you here. This situation is complex.
Answered on Aug 27th, 2012 at 10:05 AM

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Trusts Attorney serving Sacramento, CA at Law Office of Victor Waid
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Assuming a revocable trust as to the living parent, then that person controls the amendments to the trust, assuming their mind is lucid and clear to make decisions. If the trust became non revocable as to your mother upon the death of your father then no amendment to the trust can be made, leaving you with the question as to whether to challenge the no contest clause. As to the balance of your questions, you need to obtain a probate litigation lawyer since your mother is already working with a lawyer who can explain to you the effects of challenging a no contest clause. Challenging a no contest clause has serious consequences for either side. So be careful and weigh your decision carefully.
Answered on Aug 27th, 2012 at 10:04 AM

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General Practice Attorney serving Glendale, CA at Law Office of Michael Stafford
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Because of the complexities of a non-contest clause and their dangerous effect, you should consult with an attorney.
Answered on Aug 27th, 2012 at 10:03 AM

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