My father passed away 5 years ago. My mother is still living. There is a trust from which only my mother receives income now. I and two sibl...

Question

My father passed away 5 years ago. My mother is still living. There is a trust from which only my mother receives income now. I and two siblings are the eventual beneficiaries upon my mother's death. The trust did include a vacation home that my brother took possession of a year ago. I believe there was an appraisal that valued the home at $140,000, and my brother has agreed to reduce his share of the eventual inheritance of the trust assets by the $140K. He is not paying the trust interest on the $140K. My question is: Is it common for no interest to be paid? Is it fair for my other sibling and I to ask that interest be paid to the trust? We want to maintain good relationships, but do we have any say in enforcing the payment now, or in requiring that the total of the interest that should have been paid over the years deducted from my brother's share of the inheritance?

Answer

If he was not required to include the asset in the trust and voluntarily agreed to reduce his share by this amount, interest may not be appropriate. When was the appraisal? Is his ultimate share of the trust reduced by this amount alone without a further appraisal? If the amount is fixed in time is it based on his acceptance of that asset earlier than normal distribution time? An attorney needs to review the trust and the trustee may need to get a written agreement so that all parties are fairly protected.