Living Trust Issues

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cooped

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Hello,

My mother passed away recently and left all of her property in a living trust. My brother is the successor trustee and my sister, nephew, and I are all beneficiaries along with my brother.

Our issue is with the largest asset, the house. The trust says the house is to be sold and the proceeds to be divided up equally among the four beneficiaries. About 3 years ago, my brother had a failed business and borrowed around $130,000 from my mother and she refinanced the house to loan him the money. My brother has been making a portion of the mortgage payment ever since. This all happened after the house was placed in the living trust.

So, obviously the net proceeds from the sale of the house are significantly reduced but it appears as if my brother does not intend to include his loan amount in the final trust settlement. I say "appears" because he is being evasive about everything so far -- it's only been a week or so. None of this is documented and I don't have a copy of the trust yet.

Does my brother have any legal obligation to pay what he owes? It seems like a conflict of interest and the rest of us feel kind of powerless.

Thanks for your advice...
 
Please accept my condolences upon your mom's demise.
God bless you all.

If your brother owed a debt, it was owed to you mother.
When mom died, unfortunately for you, your brother's debt died, too!!!!

Your brother is under no legal obligation to repay any of you.

He doesn't (or didn't) owe any of his siblings anything.

Brother is entitled to an equal share as mother bequeathed.
 
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