Trust administration

[Mr.Mr]

Jurisdiction

California

( Calif)My sibs and myself will inherit property and some bank accounts. We have 1 sibling that we would like to exclude from receiving anything. What do we have to do to see that happen?

 

[PayrollHRGuy]

Nothing in your post other than the title mentions a trust. What makes you think you have the right to cut out one of your siblings from any inheritance there may be?

 

[adjusterjack]

Is the person who created the trust dead?

If yes, then the trustee must follow the terms of the trust.

If the trustee tries to cut out the sib, the sib can sue, and win a ton of money.

 

[Mr.Mr]

Nothing in your post other than the title mentions a trust. What makes you think you have the right to cut out one of your siblings from any inheritance there may be?

The estate is in a trust. All other siblings agree to omit one sib. Pour father created trust, my mom is cotrustee, however we have POA. Are we able to do this?

 

[Zigner]

The estate is in a trust. All other siblings agree to omit one sib. Pour father created trust, my mom is cotrustee, however we have POA. Are we able to do this?

Are your parents DEAD?

 

[Mr.Mr]

Are your parents DEAD?

Father yes, mother is incapacitated.

 

[zddoodah]

My sibs and myself will inherit property and some bank accounts.

The word "inherit" typically refers to a probate estate, but you titled the thread as relating to a trust. My guess is that you and your siblings are beneficiaries of a trust that owns (real?) property and bank accounts. But maybe you mean something else.

We have 1 sibling that we would like to exclude from receiving anything. What do we have to do to see that happen?

If you clarify the situation, we might have some further thoughts, but you likely can't.

The estate is in a trust. All other siblings agree to omit one sib. Pour father created trust, my mom is cotrustee, however we have POA. Are we able to do this?

You have a POA from whom that says what? If you're suggesting that your mother gave you a POA and that you might use that POA to act in your mother's capacity as "cotrustee" (which implies that there is another trustee) to modify the trust to exclude one of your siblings, that would absolutely not be legal.

I suggest your mother (and, if there is one, the other co-trustee) confer with a local trust attorney about their duties and obligations. If there is no other co-trustee and you believe your mother is not competent to serve as trustee, then you and your siblings should be conferring with legal counsel.

Regardless, using your POA for your own self-interest is a HUGE no-no.

Father yes, mother is incapacitated.

Incapacitated in what regard? Also, if your father made the trust, then it likely became irrevocable and not subject to modification upon his death.

 

[Tax Counsel]

The estate is in a trust. All other siblings agree to omit one sib. Pour father created trust, my mom is cotrustee, however we have POA. Are we able to do this?

You can't change the trust unless the trust gives you that power. A POA from your mother would likely allow you to do things with respect to her assets not in the trust, assuming the POA includes that power. But it is pretty unlikely to be enough to allow you to change the trust terms, especially who the beneficiaries are and what assets they are to receive. Try to put aside the ill will towards that sibling and just let that sibling get what your parents wanted him/her to have. That would honor your parent's wishes and will save the trust a lot of money should that sibling contest the trust. Also, remember that you have no legal entitlement to inherit your parent's money. They could have decided to give it all to charity and leave you nothing (and that would not necessarily mean they loved you any less). Be grateful that your parents decided to make this gift to you and accept it in the spirit you would any other gift.

You and your siblings should consult a probate attorney if you are determined to try to cut out your sibling and be prepared for the attorney's fees to start eating away at the assets you are going to inherit. Even if trust beats back the challenge, it is still obligated to pay those attorney fees.

 

[Tax Counsel]

Regardless, using your POA for your own self-interest is a HUGE no-no.

That's a great point too that I didn't address.

 

[Mr.Mr]

The word "inherit" typically refers to a probate estate, but you titled the thread as relating to a trust. My guess is that you and your siblings are beneficiaries of a trust that owns (real?) property and bank accounts. But maybe you mean something else.



If you clarify the situation, we might have some further thoughts, but you likely can't.



You have a POA from whom that says what? If you're suggesting that your mother gave you a POA and that you might use that POA to act in your mother's capacity as "cotrustee" (which implies that there is another trustee) to modify the trust to exclude one of your siblings, that would absolutely not be legal.

I suggest your mother (and, if there is one, the other co-trustee) confer with a local trust attorney about their duties and obligations. If there is no other co-trustee and you believe your mother is not competent to serve as trustee, then you and your siblings should be conferring with legal counsel.

Regardless, using your POA for your own self-interest is a HUGE no-no.



Incapacitated in what regard? Also, if your father made the trust, then it likely became irrevocable and not subject to modification upon his death.

The word "inherit" typically refers to a probate estate, but you titled the thread as relating to a trust. My guess is that you and your siblings are beneficiaries of a trust that owns (real?) property and bank accounts. But maybe you mean something else.



If you clarify the situation, we might have some further thoughts, but you likely can't.



You have a POA from whom that says what? If you're suggesting that your mother gave you a POA and that you might use that POA to act in your mother's capacity as "cotrustee" (which implies that there is another trustee) to modify the trust to exclude one of your siblings, that would absolutely not be legal.

I suggest your mother (and, if there is one, the other co-trustee) confer with a local trust attorney about their duties and obligations. If there is no other co-trustee and you believe your mother is not competent to serve as trustee, then you and your siblings should be conferring with legal counsel.

Regardless, using your POA for your own self-interest is a HUGE no-no.



Incapacitated in what regard? Also, if your father made the trust, then it likely became irrevocable and not subject to modification upon his death.

Thank each of you for your input, , I apologize for not being more detailed, and using the term "incapacitated", incompetent is the correct term.. Our father created the trust, making our mom CoTrustee, and then 2 sibs are Successor CoTrustees, whom hold POA. Our "bad apple" is a sib looking for a free ride, and the sib's significant other didn't work, they both are just waiting for mom to pass, so they can collect. Again, thank you guys for your answers!

 

[Zigner]

Thank each of you for your input, , I apologize for not being more detailed, and using the term "incapacitated", incompetent is the correct term.. Our father created the trust, making our mom CoTrustee, and then 2 sibs are Successor CoTrustees, whom hold POA. Our "bad apple" is a sib looking for a free ride, and the sib's significant other didn't work, they both are just waiting for mom to pass, so they can collect. Again, thank you guys for your answers!

And the other siblings are trying their damndest to find a way to go around the specific wishes of the folks who created the trust.

 

[Mr.Mr]

And the other siblings are trying their damndest to find a way to go around the specific wishes of the folks who created the trust.

Correct, we wouldnt want drug users wasting our parent's money, that will be all of ours.

 

[Zigner]

Correct, we wouldnt want drug users wasting our parent's money, that will be all of ours.

Neither I nor the law could give a flying fig about what YOU want. Follow the wishes of the folks who created the trust.

 

[Tax Counsel]

Correct, we wouldnt want drug users wasting our parent's money, that will be all of ours.

I understand your desire to keep the money from a sibling who would waste it on drugs. But it's not really your choice. Your parents decided to give that sibling a share of their assets and so far you've not stated any good legal grounds to exclude that sibling from getting his/her share. Don't let your emotions take over here. Instead, look at this practically. Going to court to try to get that sibling is going to cost money in legal fees, court fees, etc. Unless a probate lawyer tells you there is a reasonably good chance to win you may find you are just tossing money away on a fruitless court action. This endeavor will only be worthwhile to you if you end up with MORE money from the estate than you'd get now with the sibling getting his/her share. In other words, don't look at what the sibling will get as your basis for your decision. Instead look at what you are likely to end up with when all is said and done. Throwing money at lawyers and the courts is just as much a waste of money if you don't have a good shot and end up losing.