Legal Question in Wills and Trusts in California
My Mom passed away in June of 2010. My brother is the Trustee. On the Trust it states that the Trustee shall divide the children's Trust into two equal shares, one share for each of the Grantor's two children Steve Richardson and Alex Richardson. Provided Alex Richardson is living at the Grantor's death and elects to receive the improved real property at [Address], the property shall be distributed to Alex Richardson as part of his distributive share. The property shall be valued at its net fair market value. In the event the net fair market value is greater than the share Steve Richardson receives, Alex Richardson shall pay such amount as required to equalize the difference in distributions between Steve Richardson and Alex Richardson not later than the tenth anniversary of the Grantor's death.
My question is, can Alex Richardson live in the house for ten years before making the equalization payment, or does he have to pay something now in order to continue living in the house? My brother is attempting to extort and harass me to pay him off now and is in collusion with my Mom�s attorney who is also representing him as Trustee. Please provide me an answer to above questions mentioned. Thank you.
2 Answers from Attorneys
You should meet with an attorney to review the entire document; however, what you have written appears to support a conclusion that Alex has up to 10 years to make the equalizing payment. It makes sense that there would be some time frame for making the payment. For example, Alex may not have the cash and may need to apply for a loan or even sell the property to make the payment and giving Alex a 10 year window allows Alex to time the transaction favorably.
I agree with Mr. Feldman. It's never certain what a clause means without reviewing the entire document, but there is nothing in what you have presented that would support Steve Richardson demanding any payment prior to the tenth anniversary of the Grantor's death. Furthermore, if he has not transferred title free and clear to Alex, he may be in breach of his fiduciary duties and subject to removal or penalties as trustee.
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