Legal Question in Wills and Trusts in Washington
Beneficiaries rights under a Living Trust
My sister and I have often been told by our mother that upon her death we will receive the balance of real estate gifting that was accomplished three years ago. In essence, we and our brother, who is the trustee of our father�s estate, were gifted mother�s half of three different real estate parcels which was designed to save estate taxes. Our deceased father�s half must be held in trust until mom�s death. Even though mother has told us that father�s half of these real estate parcels will be ours when she dies, we worry that something is wrong because of previous misdeeds by our brother, the trustee. Mother has not been able to understand these complicated situations for years (age 87). Nevertheless, we have recently learned that our brother had her sign a living trust a few years ago, which we know nothing of nor does mom remember. Since her estate will not go through probate because of the living trust, what rights do we have to learn if mom�s original and current wishes are properly included in the trust? How important is it to know the facts before mom�s demise? If we can�t see the trust now, will we be able to read it after her death and possibly contest it?
1 Answer from Attorneys
Living trust and trustee brother
It's not quite clear what your father and mother's estate plan was. If their estate was greater than $600,000, they may have created a credit shelter trust for your father's half of the community estate (to make use of his credit on federal gift and estate taxes). This might have been done through a living trust. If so, it would still be valid as to your mother's assets, unless she had not treated the assets as in trust. If this were the case, your mother would still be the grantor trustee unless she had declined in favor of the first successor trustee. On her death, her estate would also be able to have the tax credit. Thus, the trust may not have been caused by your brother but was only the continuation of what they both had before Dad's death.
As to the real property, it's not clear what the situation is.
And of course, the plan may be something different entirely.
What was the nature of your brother's prior misdeeds? Is he willing to talk about the estate plans? I would suggest that your mother call a family meeting to discuss the whole estate plan, perhaps even including her accountant. As to knowing, NOW is the time to get everything out in the open. Unless I'm mistaken, Mom is still calling the shots (if she is strong enough to stand up to Brother).
Where in WA are you? If you are not in the Puiget Sound area, I could refer you to an another attorney.
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