Legal Question in Wills and Trusts in California
Is it a Gift?
I am the successor trustee to my mothers trust. While going through her paper work, I found cancelled checks made out to my siblings in substantial amounts. The checks were written out of an account that she had listed in the trust. She mentioned to me that she had loaned money to these siblings. Now would this money be considered a loan if I have only the cancelled checks? I did find her writtings of cash amounts she doled out. Do I collect from these siblings and consider it with her assets?
2 Answers from Attorneys
Re: Is it a Gift?
The loans need some evidence that they exist--you can try treating them as loans, but you'd have a hard time collecting if the siblings argue otherwise.
Depending on your relationship and their character, you may wish to bring up the subject and get from them how much she loaned them, if you're unable to find proof of the loans after a diligent search of your mother's records.
Re: Is it a Gift?
A loan is not evidenced merely be a canceled check. It is possible to make a note on the check as to the purpose for the payment, but without some evidence among your mother's accounts and records, you will have to rely on family relationships to determine your mother's intent.
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