Legal Question in Wills and Trusts in California
Hello..
I have been named executor of my Dad's trust. I am 65 and the oldest of 4 children. I have found that my Dad loaned 1 brother $5,000, then $20,000, then $30,000. None of these amounts has been paid back. Now I am supposed to divide up the estate into 4 equal amounts. Does he win and the rest of us lose?
Tom
2 Answers from Attorneys
Obtain yourself a probate litigation lawyer to represent you, the trustee of the trust, who will examine the terms of the trust. If those are true loans, then they are assets of the trust and are recoverable or may be offsets against that brother's share. Be careful here because you could be liable to the remaining siblings when acting as the trustee, if you make a mistake as to how you classify the loans, as to whether they were gifts or loans. The trust administration and attorney fees are payable by the trust assuming enough assets are available.As trustee you are entitled to fees also.
Be careful with the family loans as the IRS has regulations about this.
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