Q: My mom is elderly, my brother offered to have her live with his family. They decided to purchase a home together.
My problem is that the house they purchased is going to be used to sustain my sister-in-laws Home Health Care business. The whole process was kept secret from the 3 other siblings until after the purchase was completed. We also discovered that my sister-in-law had purchased a second Home Health Care Business and that too will run out of the Home my mother purchased with my brother. The property purchased was $700,000. my Mom gave my brother $300,000 from the sale of her townhouse. There is a trust fund set up for the 4 siblings, I would like to have the money my brother and wife received to purchase their new home and place of business to be deducted from his share of the trust. How do I go about doing this.
The first question is: Was the $300K a gift and if so did your mother file a gift tax return. If the answer is it is not a gift, then the second question is: Who owns the property and how is the property titled?
The easiest way to deal with this is for the Trust to change the terms of the distribution. Assuming the remainder of the trust is a four way equal split, the Trust would provide that the net trust assets would be calculated as follows: Trust Net Assets plus $300,000 are divided by 4, 3 siblings would get the full amount computed, then your brother would get the same amount less $300K. Example: Trust Assets at time of your mother's death $1.2 Million.
The Distribution amounts would be for you and your two other siblings $1.5 Million/4 or $375,000, your brother gets $75K.
A: Your question ("How do I go about doing this") is not a valid question, because you do not have the authority to change your mother's trust. She would have to be the one doing something, and if you're pushing her, it could get undone under the law of undue influence. She needs to hire an elder law attorney, and meet alone with the attorney, to go over what happened, whether it was what she wanted to do, and what steps can be taken to rectify the situation.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.