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March 22nd Text Questions

Q: My father passed away over a year ago and my mom is no longer alive. I’m an only child and my dad set up a trust for me. All of their assets are in it but it also came with a non-family administrator. Can I do anything to get rid of this administrator and take control of my own inheritance? I have received no payouts on the trust for over a year. The day before my dad died, the Contract for Deed on his home was paid off. Substantial amount of money.

A: The child should have a copy of the trust reviewed by a lawyer. The trustee must follow the terms of the trust as far making distributions to the child. If the trustee is not following the terms of the trust, the trustee could be forced to comply with the terms, or be removed as trustee.

Q: My parents have moved to a new house and want to ensure their old house proceeds from the sale go to my siblings and me. It was their first home purchased over 50 years ago. Can they gift the property to us that we then in essence turn around and sell or can they gift us the proceeds from the sale if the home remains in their name for the sale?
A: There are several ways for the parents to gift the value of the property to their children. Upon sale, the parents could make outright gifts of the sale proceeds to the children. The parents could gift the property to the children and the children could sell it and divide up the proceeds. There are both tax implications and legal implications to each approach. I would highly recommend that before any plan is adopted the family should seek both legal and tax advice.