Adult Child's Inheritance held in trust by Executors

[sunshine2104]

My question is regarding California law as it applies to an adult child's inheritance being held in trust by the executors of parents Living Trust.

My cousin is 64 and competent, however, her parents have stated in their Living Trust that all of her siblings get their inheritance in one lump sum, but her inheritance is to be held in a trust monitored and dispersed by the Executors, who just so happen to be her siblings.

Can she contest this or does she have to concede?

 

[LdiJ]

Are her parents still living? Has she asked them why? Apparently her parents think, or thought that they needed to protect her by having the money doled out to her rather than her receiving it in one lump sum. Even people that are competent can be bad with money or have predatory people in their lives. Since her parents CAN do that, her best hope (if they are still living) is to convince them that it is not necessary.

 

[zddoodah]

California law as it applies to an adult child's inheritance being held in trust by the executors of parents Living Trust.

Let's start with some terminology.

There's no such thing as an "executor[] of [a] [l]iving [t]rust." An "executor" is a person who administers the estate of a deceased person (the terms "administrator" and "personal representative" are generally synonymous). The person who administers a trust is called a trustee.

Also, "inheritance" is not a term typically used to describe benefits that one is or may be entitled to receive from a trust.

My cousin is 64 and competent, however, her parents have stated in their Living Trust that all of her siblings get their inheritance in one lump sum, but her inheritance is to be held in a trust monitored and dispersed by the Executors, who just so happen to be her siblings.

Can she contest this or does she have to concede?

She can contest it, but she'd likely lose. If her parents are still alive, she might want to sit down and discuss with them why their trust provides for disparate treatment. Perhaps she can convince them to amend the trust. However, at the end of the day, however, her parents have the absolute right to dispose of their assets as they see fit, including leaving different amounts to different children and otherwise treating their children differently.

 

[Foamback]

Are there unstated reasons why the parents did this? One can be competent and still have days or weeks or months binging or drugs and alcohol.

I have a friend who has been medicated successfully for bipolar for a good decade now. But when things go haywire, he could easily find the need to buy three monster trucks in a weekend.

The definition of competent is a fairly low bar. Is there a fear of management by the sibs beyond the obvious affront an adult would feel having their affairs largely bossed around by family members?

https://www.law.cornell.edu/wex/competent#:~:text=The term competent is used,reason, or to make decisions.

 

[sunshine2104]

Let's start with some terminology.

There's no such thing as an "executor[] of [a] [l]iving [t]rust." An "executor" is a person who administers the estate of a deceased person (the terms "administrator" and "personal representative" are generally synonymous). The person who administers a trust is called a trustee.

Also, "inheritance" is not a term typically used to describe benefits that one is or may be entitled to receive from a trust.




She can contest it, but she'd likely lose. If her parents are still alive, she might want to sit down and discuss with them why their trust provides for disparate treatment. Perhaps she can convince them to amend the trust. However, at the end of the day, however, her parents have the absolute right to dispose of their assets as they see fit, including leaving different amounts to different children and otherwise treating their children differently.

Thank you for responding. I appreciate your feedback.

 

[sunshine2104]

Are there unstated reasons why the parents did this? One can be competent and still have days or weeks or months binging or drugs and alcohol.

I have a friend who has been medicated successfully for bipolar for a good decade now. But when things go haywire, he could easily find the need to buy three monster trucks in a weekend.

The definition of competent is a fairly low bar. Is there a fear of management by the sibs beyond the obvious affront an adult would feel having their affairs largely bossed around by family members?

https://www.law.cornell.edu/wex/competent#:~:text=The term competent is used,reason, or to make decisions.

There is concern that this cousin has experienced mental issues in the past.

 

[quincy]

There is concern that this cousin has experienced mental issues in the past.

Documented concerns?

 

[sunshine2104]

Yes.

 

[quincy]

Yes.

Thank you for answering my question. So there is medical documentation of the cousin seeking treatment for mental health issues. How long ago, or has treatment been ongoing off and on over the years?

 

[sunshine2104]

She self admitted to a psych ward about 7 years ago for bipolar episode.

 

[Foamback]

Are the settlors ( parent(s)) still alive?

https://santaclara.courts.ca.gov/se...alfinancialend-life-issues/living-trusts#what

 

[sunshine2104]

Are the settlors ( parent(s)) still alive?

https://santaclara.courts.ca.gov/se...alfinancialend-life-issues/living-trusts#what

Yes and they won't agree to change it.

 

[Zigner]

Yes and they won't agree to change it.

Then there's your answer.

 

[quincy]

She self admitted to a psych ward about 7 years ago for bipolar episode.

Thank you for answering my question.

Yes and they won't agree to change it.

That’s that, then.

 

[zddoodah]

Are the settlors ( parent(s)) still alive?

Yes and they won't agree to change it.

Then that's the end of the discussion. As I wrote previously, "at the end of the day, . . . her parents have the absolute right to dispose of their assets as they see fit, including leaving different amounts to different children and otherwise treating their children differently."