Home > Research Legal Advice > Estate Planning > Can a trustee of an estate withhold money due you as a gift on her own a...
Asked 11 months ago - Springfield, OH
Flagmy parents were helping us out with bills and would never talk about my finances with my sister who is the trustee of the estate, she says they told her that the money was a loan and must be payed back. they would not let us sale our home to help reduce our bills, there is also no record of the money we were giving them to help pay them either. the trustee also says there will be an audit of the estate to withold any money they gave us.
You need to find an experienced estate litigation attorney ASAP and share all documents and information with him/her so that the attorney can figure out exactly what is going on in your situation. You are mixing up terminology, so I can't answer your question. However, as a general matter, for the transfers to be a loan, there needs to be some written document that supports this fact (ideally, a paper signed by you acknowledging your obligation to payback the loan). If your mother intended the transfers to be an advancement of your inheritance, then her Will needs to reflect this fact. Your sister can't just hold back money from you because she thinks it is what your mother would have wanted if your mother herself did not take steps to implement this as part of her estate plan. I think you need to be represented by an attorney to get the best result as it appears that your sister is going to take a position adverse to you in this process. Best wishes to you.
You need to meet with a probate attorney to assist you with these matters. If there is evidence to support your sister's position, then a court might consider it. Otherwise, your obligations would die with your parents. It sounds like this was all very loosely documented during your parents' lifetimes. As much as she might like to, your sister cannot rewrite that deal, today.
James Frederick
Most likely, the amounts they gave you will be treated as gifts, not loans ... but there are many poorly drafted wills and trusts that do not make this clear and you may have a battle on your hands.
You need to consult personally with an expert probate and trust administration specialist who can review the document, listen to your specific facts, and give you dependable advice on your situation. There is no shortcut.
The only way to answer your question with any authority is to have and read the trust document under which your sister is acting as trustee. Many trusts that I have drafted authorize the trustee to take into account the needs and resources of beneficiaries in making distributions. It is not unusual for a trust to direct the trustee to take into account loans made to the beneficiary during the grantor's lifetime. So without all the documentation, which would include not only the trust, but your parents notes, comments, books of account, bank statements, cancelled checks, and so forth I don't see how it would be possible to answer your question.
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