QUESTION
Can sister just change her mind and keep the trust assets?
Asked on Mar 28th, 2016 on Estate Planning - California
More details to this question:
My mother died a year and a half ago leaving my sister and I 50/50 beneficiaries to her trust, with my sister as trustee. My sister took a copy of the trust and closed out bank accounts totaling about $70,000. When I asked her about them, she said that they were not part of the trust although we were treating them as if they were. She has never listed them on any accounting I have received regarding the trust. I have it in writing that she planned to include it.
3 ANSWERS
No, she must follow the conditions of the trust.
Answered on May 02nd, 2016 at 5:19 PM
Edwin K. Niles
Time to lawyer up.
Answered on May 02nd, 2016 at 5:19 PM
She can not include the accounts if there is no reasonable argument that can be made that they are part. But she then also can not close out the account using the trust documents. if they are not part of the Trust, they are part of the estate and if their is no will and her husband is dead, the children split the estate 50-50%. Sounds like either way she owes you $35,000. A court would remove her as trustee if suit were filed against her, but that would be costly as to legal fees, but as a threat might cause her to co-operate.
Answered on May 02nd, 2016 at 5:18 PM