The question
It has come to my attention that my father (mother is deceased) is setting up his trust to falsify that I was given a loan against his trust. I should preface this that I am estranged from my father and siblings. I have come across this information because his attorney sent me a copy of my father's will and trust.
It falsely states that I was given a loan of approximately $100,000. It also states that I am not a beneficiary. Furthermore, and this is the troubling part, it states that my siblings can each sue me for 50% of the unpaid loan.
Here are the facts: I have NEVER taken nor been offered a loan from my parents. I was given a gift from them in 1995 for $10,000. This transaction was done via the phone. No written documentation was ever made. In 1995 when I purchased my first home, I had requested to borrow $10,000 to make sure I met my mortgage lender's minimum savings requirement after I purchased my first home. At that time, I was not estranged from my family. My parents decided to "gift" me the money and did not want to make it a loan. Because it was under the maximum amount one could "gift," it was not considered a taxable transaction. I later sold my house in 1999.
Again, there was no documentation about this transaction. At best, he has a cashed check from 1995. But there was no loan documentation nor paperwork indicating it was a gift. However, it most definitely was.
My father is a sick man and has attempted to hurt my family several times. I suspect, now that he is 83 and recently widowed, he is looking for one last parting attack against me. I don't want anything from this man. In fact, back in 1996, when he asked me to be the executor of his trust, I refused because I knew -- even when the five of us were on good terms -- that it would result in an ugly situation.
I want nothing from this man, nor my siblings, other than to be left alone. I am trying to protect my son and his college savings, (who my parents sent to the hospital when he was young) and I'm concerned now that my siblings could file a lawsuit against me that could run up a serious legal bill for my family. I am not in a financial position to hire an attorney. Even though any evidence would have to be fabricated (aside from the cashed "gift" check from 18 years ago), I am deeply concerned that I could spend thousands of dollars protecting myself from blood-sucking siblings who have been told by my dad gave me $100K.
What can I do? What is my most probably scenario here and what is the worst case (yet realistic) scenario?
Thanks!
From the LawyerCentral forum archive. Originally posted 13 April 2013 on a legal forum that has closed. Names and contact details were removed. See the original (Internet Archive).
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