What Can I Do If My Inheritance Is Put Into a Trust?

Question from AWOL, What Can I Do If My Inheritance Is Put Into a Trust?

Answer from AI:

When a will is changed last minute to place your inheritance into a trust, and your sister is both the executor and trustee, it can raise several legal and ethical questions. This situation is further complicated by the fact that you are receiving AISH (Assured Income for the Severely Handicapped) benefits, which limit the amount you can receive from other sources.

Understanding Trusts and Executors

A trust is a legal arrangement where one party (the trustee) holds and manages assets for the benefit of another (the beneficiary). In your case, your sister is the trustee, and you are the beneficiary. The executor is responsible for carrying out the terms of the will, which includes setting up the trust.

Legal and Ethical Considerations

Several legal and ethical issues may arise in this scenario:

• Last-Minute Changes to the Will: If the will was changed last minute, it is important to ensure that your mother had the mental capacity to make such changes and was not under undue influence. Canadian law requires that the testator (the person making the will) understands the nature and effect of the will, the extent of the property being disposed of, and the claims of those who might expect to benefit.
• Conflict of Interest: As both the executor and trustee, your sister has a fiduciary duty to act in your best interest. If she stands to benefit from the trust upon your death, this could be seen as a conflict of interest.
• AISH Rules: AISH regulations limit the amount you can receive from other sources to $200 per month. This is to ensure that your benefits are not reduced or disqualified. The trust should be structured in a way that complies with these rules.

Steps to Take

If you believe that there have been ethical or legal breaches, consider the following steps:

1. Review the Will and Trust Documents: Carefully review the will and trust documents to understand the terms and conditions. Look for any clauses that might indicate undue influence or lack of capacity.
2. Consult a Different Lawyer: If your current lawyer says there is nothing you can do, it may be beneficial to seek a second opinion. A different lawyer might have a different perspective or suggest alternative legal avenues.
3. File a Complaint: If you suspect that your sister has breached her fiduciary duties, you can file a complaint with the court. The court can investigate and, if necessary, appoint a different trustee.
4. Contact AISH: Speak with an AISH representative to ensure that the trust is structured in a way that complies with AISH regulations. They may provide guidance on how to receive your inheritance without affecting your benefits.

When to Seek Legal Advice

Given the complexity of this situation, it is crucial to seek personalized legal advice. A lawyer specializing in wills, trusts, and estates can provide guidance tailored to your specific circumstances. They can help you understand your rights and explore potential legal remedies.

Resources

For more information, you can refer to the following resources:

• Government of Canada – CPP Disability Benefit
• Alberta Government – AISH Program

Remember, while general information can be helpful, it is no substitute for professional legal advice. Always consult with a legal professional to address your specific needs and concerns.