Do Siblings Need To Give Their Mother Their Inheritance From Their Grandparents?

In an increasingly complex world, the Financial Post should be the first place you look for answers. Our FP Answers initiative puts readers in the driver’s seat: you submit questions and our reporters find answers not just for you, but for all our readers. Today, we answer a question from Marcia about disagreements over her inheritance.

Q. My 61-year-old mother just found the will of my deceased father’s parents and although she is given $200,000, the rest of their estate goes to me, aged 30, and my brother, who is 21 years old. My mother has said to us that we have to give our portion to her. She was left a $1 million life insurance policy from my dad, who died four years ago, and has spent it all. I don’t want to give her the whole amount. I know my mother has some debt and I’m tempted to give her an amount that would pay down the debt but nothing more. I’m not sure how much will be left once taxes are paid. Do my brother and I have to give my mother anything? Can my mother sue us in court to get more than what she was left in the will? What’s the best way to protect the inheritance for me and my brother, who is disabled. —Marcia M.

FP Answers: Dear Marcia, these are strange circumstances. Did the grandparents have separate wills? Why has your mother just recently found your grandparents’ last will? Is this discovery months or years after they died? Was this your grandmother or grandfather’s will? Was this will certified by a court or it is an unsigned draft will? Is your mother the trustee or executor of their estate?

You should direct your inquiries to the people named in the will or their lawyer. If the will was filed with an estate court it is a public document and you can review the entire court file. This is a starting point to determine your legal position.

You do not mention why your grandparents’ wills are now turning up. What happened to their estates? Have all their taxes been paid? Who can provide an up-to-date accounting of the estate and confirm all debts and taxes have been paid? Once you have this information you can better assess your situation.

Ask your mother if she has been holding this estate as a trustee for you and your sibling. You must verify this as this would place all assets in trust to benefit you and your brother. This is speculative. You must review the last valid will or any trust created by a separate document.

You did not indicate the nature of your brother’s disability. His needs may only increase and be the primary concern for everyone. He may need to participate with his own lawyer. His future needs could be addressed through mediation if he is capable.

Your family may benefit from an out-of-court mediation. This may preserve family relationships. You can speak off-the-record and without prejudice in mediation to find out what happened. You can search for a mutually acceptable resolution. This can avoid potential lawsuits.

Mediation can allow everyone to put their cards on the table to discuss possible mistakes. You must identify the future needs for your brother. You may need an informal accounting to learn where the grandparents’ estate has been invested. And you’ll learn if your mother controlled these funds or used them for your brother’s care.

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Edward Olkovich is an Ontario lawyer at MrWills.com. He is certified by the Law Society of Ontario as a specialist in estates and trusts law. This information does not substitute for legal advice.