Hi, About 10 years ago, my father placed all of his assets into a California revocable family trust (pour-over). As a part of this he appointed my sister as successor trustee and she signed the trust documents affirming this. She and I are the sole beneficiaries. A couple of years later she borrowed substantial sums of money from him - which she never repaid. In addition, he guaranteed a credit card for her, which she defaulted on, requiring him to pay. There is no mention of this in any trust or will documents. My question is as follows - Does she have an obligation to disclose this as a debt owed to the trust, and, if so, would it effect trust distributions? The trust is to be dissolved upon distribution of assets. Thanks, Brand
If the money given to your sister was in fact a loan and not a gift, then the trustee has an obligation to collect all money do it. Does she have a statute of limitations defense? Additional facts are needed.
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