Legal options for ensuring inheritance trust payment

Legal options for ensuring inheritance trust payment

My parents had two offspring, myself, and my sister. In the early 1990’s my parents loaned my sister $***** [REDACTED] from their Trust so that she could keep her house in [REDACTED] during and after her divorce. My parent’s Trust was subsequently deeded on her [REDACTED] property. In the mid-2000’s my parents quit-claimed their interest in the [REDACTED] property and amended their Trust to provide me [REDACTED] upon the death of the last Grantor.

My father was the last Grantor and he passed on [REDACTED]. The issue lies within the way my parent’s Trust states the monies are to be paid to me.

The text of the Trust states, “Any interest that the Grantors or this Trust has in any residence co-owned with the Grantor’s daughter in California shall be distributed outright to the Grantor’s daughter. In that case the Grantor’s daughter shall pay $****** [REDACTED] to the Grantor’s son. If this amount is not paid off prior to the sale of the residence, the Grantor’s son shall be entitled to this amount at the sale of such residence.”

My sister has stated to me that she does not intend to sell the house ever and that she intends to deed the house to her son without having a sale recorded and that therefore I will never see the money owed me by my parent’s Trust.

I have been very patient in trying to ensure my fair equity and comply with my parent’s wishes. I have repeatedly asked my sister for a promissory note which she has refused.

My questions center around whether I could place a lien on the property and whether she is circumventing her fiduciary duties as the Executor of my parent’s Trust and what remedies may be available to me.

I reside in Colorado and she resides in California. Thank you.

Hi Dolan, I’m *****, it’s a pleasure to meet you. Are you affected by the fires? We went through a forest fire a few years ago, it’s horrible. Hopefully you are safe.

The answers to your questions:
1. No, the trust has no ownership with the property. It’s my understanding that any ownership interest was divested with the quit-claim. She never paid them back, hence the $**** stipulation in their trust that was to go to me when she sells. That was my parents’ way to make things ‘equitable’.
2. Not really. She implies that she will comply with the trust when she sells, but that she is never going to sell unless there are some unforeseen circumstances that would compel her to sell. She has suggested that she is ‘owed’ this money since she took care of my parents in their final years, but she was compensated by the trust for her labor, and incidentals.
And, finally, she as said that “perhaps mom and dad put that in their trust just to placate you.”
Is there a statue of limitations on this type of complaint? Thank you

Yes. I want to know what my rights are under California law and what remedies may be available to me, and whether this case is still viable or if too much time has passed and I can no longer pursue a remedy. Truly, I know I can’t force her to sell her home or to pay outright prior to the sale of her home. All I’m looking for is a legally binding written acknowledgement from her that she has to pay upon the sale of her house. My initial thought and my approach to her was to obtain a promissory note, now I’m wondering if a lien is more appropriate given the difficulty I’m having. If she deeds her home to her son and her son later sells the house, then there should be a mechanism to ensure that the $**** is paid to me or to my estate upon that sale, whether the home is sold in the near future or in the distant future. I’m no expert, but I suspect that a lien would mean working through the courts and I have no clue what that entails.
Another question I have is whether she has violated her fiduciary duties as the executor of my parent’s trust by trying to circumvent their intent. Every other detail of their trust has been equitably resolved.

Yes, what you say makes sense. Based on your explanation of things, let me give this some more thought. Your information has been very helpful. When you say the trustee of the trustee would that be the original attorney that drew up the trust and its amendment? The original trust was drawn up and signed in New Mexico and later amended in California. That individual is a New Mexico attorney and I have my suspicions that that individual was influenced by my sister in the development of the trust, but I have no proof. Is there a way that I can find out if that individual is still practicing law in New Mexico? Thank you, Dolan, for your answers they’re really helpful.

To help level-set my expectations, what can I expect for my $***? And, if I buy your demand letter template would you include help with questions about the letter in your $*** fee? Thank you.

OK, Dolan. Let's get an initial $*** job set up. Let me know how to pay securely and next steps. Thanks!