Absolutely. Unless your mother was also appointed as conservator of the funds, she had a duty to keep the funds intact, unless she had court approval. Good luck.
Please note that I am answering this question as a service through Avvo but not as your attorney and no attorney-client relationship is established by this posting. An attorney-client relationship can only be established through signing a Fee Agreement and paying the necessary advanced fees.
While this may be a sticky situation, given that it involves your mother and stepfather, you could see a someone who handles probate related litigation. I have added in this area. You should have the terms of the trust reviewed and your options explained to you.
THE INFORMATION CONTAINED HEREIN IS INTENDED AS GENERAL INFORMATION ONLY. IT IS NOT LEGAL ADVICE, NOR IS IT INTENDED TO BE RELIED UPON AS SUCH, AND IS NOT INTENDED TO ESTABLISH AN ATTORNEY-CLIENT RELATIONSHIP. IF YOU HAVE A LEGAL QUESTION, CONSULT WITH AN EXPERIENCED ATTORNEY.
Absolutely. My colleague, Bryan Eastin, and I worked on a case similar to yours 8-9 years ago. We obtained a judgment against the sister. Bryan can be reached at (602) 277-4441 or firstname.lastname@example.org.
The information contained in my answer is provided for informational purposes only, and should not be construed as legal advice.