Never thought I'd be here--guess that's what we all say, though.
My mother passed away 24 December, 2010. My stepdad preceded her in death on 7 March, 2009. At his passing he made mom sole beneficiary of his estate. However, he had also set up the John Doe Living Trust, which was to be funded by his $1,000,000 retirement account. Mom was to have use of this trust until her demise, at which time it was to revert to my stepbrother and stepsister.
When John died, his lawyer informed both my mother and my stepbrother that, due to taxes, it would be far better to set up the John Doe Spousal Trust. At that time, he wrote an apologetic letter to my stepbrother, explaining that he [lawyer] "felt that" my mother would not remove any more money than "her daily living expenses, and, of course, unforeseen circumstances such as a new roof."
However, I have cerebral palsy as well as a son with Asperger Syndrome, so when mom unexpectedly received a diagnosis of terminal lung cancer, she decided--without my knowledge or input--to begin to move $100,000 of the IRA into a joint money market account containing both our names.
She had successfully moved this money from the spousal trust to our money market account when, in the third week of December it became clear that she would not live into the new year. Her accountant suggested immediately contacting the brokers of the spousal trust and transferring $70,000 from it into our money market account because of anticipated tax liabilities. At this time, my mom phoned the broker, and transferred the money as the accountant had suggested.
Due to my mother's pre-planning, I was able to pay off my mortgage and to meet the tax burden, and to have a few thousand dollars remaining as a cushion.
My step-siblings then went to claim their money, and discovered that--instead of about a million--they would be receiving about $800,000.
There was no money in my mother's estate, only a homesteaded house which passes outside the estate [we live in Florida]. My brothers and stepbrother divided her possessions and furniture as they saw fit [within two weeks of her death], so the "estate inventory" consisted basically of a 14 year old Saturn station wagon, KBB 2,500, which my lawyer advised be titled and registered in my name in exchange for my duties as personal representative to the estate. I did so.
Yesterday, my step-brother filed suit against me as PR of the estate. He claims that prior to her death, my mother "misappropriated funds" from the John Doe Spousal Trust--which my step-brother has since renamed the John Doe Living Trust, with my step-brother as trustee.
Can I be made to pay his claim? I no longer have the bulk of the money; it went to taxes and mortgage. My two brothers and I each received 1/3 of the homesteaded property, and it is currently on the market. I believe that the property is judgement-proof, and there's really not much else. Did my mother do anything wrong? It was her understanding that the money in the spousal trust was hers to use until she died.
Thanks to any and all.
My mother passed away 24 December, 2010. My stepdad preceded her in death on 7 March, 2009. At his passing he made mom sole beneficiary of his estate. However, he had also set up the John Doe Living Trust, which was to be funded by his $1,000,000 retirement account. Mom was to have use of this trust until her demise, at which time it was to revert to my stepbrother and stepsister.
When John died, his lawyer informed both my mother and my stepbrother that, due to taxes, it would be far better to set up the John Doe Spousal Trust. At that time, he wrote an apologetic letter to my stepbrother, explaining that he [lawyer] "felt that" my mother would not remove any more money than "her daily living expenses, and, of course, unforeseen circumstances such as a new roof."
However, I have cerebral palsy as well as a son with Asperger Syndrome, so when mom unexpectedly received a diagnosis of terminal lung cancer, she decided--without my knowledge or input--to begin to move $100,000 of the IRA into a joint money market account containing both our names.
She had successfully moved this money from the spousal trust to our money market account when, in the third week of December it became clear that she would not live into the new year. Her accountant suggested immediately contacting the brokers of the spousal trust and transferring $70,000 from it into our money market account because of anticipated tax liabilities. At this time, my mom phoned the broker, and transferred the money as the accountant had suggested.
Due to my mother's pre-planning, I was able to pay off my mortgage and to meet the tax burden, and to have a few thousand dollars remaining as a cushion.
My step-siblings then went to claim their money, and discovered that--instead of about a million--they would be receiving about $800,000.
There was no money in my mother's estate, only a homesteaded house which passes outside the estate [we live in Florida]. My brothers and stepbrother divided her possessions and furniture as they saw fit [within two weeks of her death], so the "estate inventory" consisted basically of a 14 year old Saturn station wagon, KBB 2,500, which my lawyer advised be titled and registered in my name in exchange for my duties as personal representative to the estate. I did so.
Yesterday, my step-brother filed suit against me as PR of the estate. He claims that prior to her death, my mother "misappropriated funds" from the John Doe Spousal Trust--which my step-brother has since renamed the John Doe Living Trust, with my step-brother as trustee.
Can I be made to pay his claim? I no longer have the bulk of the money; it went to taxes and mortgage. My two brothers and I each received 1/3 of the homesteaded property, and it is currently on the market. I believe that the property is judgement-proof, and there's really not much else. Did my mother do anything wrong? It was her understanding that the money in the spousal trust was hers to use until she died.
Thanks to any and all.
And thanks for your condolences; it seems as if my mom died only yesterday, so it means more than you know that you acknowledged her passing.