Can my inheritance be bought before being inherited?

[Hamm]

What is the name of your state (only U.S. law)? California

My grandmother years ago had her will drawn up, leaving her shares in the family company to be split 50/50 between myself and my cousin. She now has dementia and my mom and uncle have power of attorney.
My parents and I do not have a great relationship, I've called them out on the way they run the family business and they did not like that.
My parents are now buying my grandmother's shares in the company, so they will own 100%. (After they bought out 2 others). They have not told my uncle their plans, they say they don't need to tell him ( other power of attorney, and father of the cousin who was also set to receive half the business).
My question is, if my grandma has already willed her shares to my cousin and me, can they be bought like this, leaving us to inherit nothing now? I was told by my financial planner (who is also my parent's financial planner) that because of my grandma's mental state that my parents could not touch her shares.

 

[LdiJ]

What is the name of your state (only U.S. law)? California

My grandmother years ago had her will drawn up, leaving her shares in the family company to be split 50/50 between myself and my cousin. She now has dementia and my mom and uncle have power of attorney.
My parents and I do not have a great relationship, I've called them out on the way they run the family business and they did not like that.
My parents are now buying my grandmother's shares in the company, so they will own 100%. (After they bought out 2 others). They have not told my uncle their plans, they say they don't need to tell him ( other power of attorney, and father of the cousin who was also set to receive half the business).
My question is, if my grandma has already willed her shares to my cousin and me, can they be bought like this, leaving us to inherit nothing now? I was told by my financial planner (who is also my parent's financial planner) that because of my grandma's mental state that my parents could not touch her shares.

You could always tell your uncle and cousin what they are up to. What they are doing may or may not be legitimate. If her assets need to be liquidated to provide for her care, then what they are doing would be legitimate. If her assets do not need to be liquidated to provide for her care, then what they are doing might not be legitimate at all. Your uncle however would be the person in the best position to do something about it.

 

[Hamm]

You could always tell your uncle and cousin what they are up to. What they are doing may or may not be legitimate. If her assets need to be liquidated to provide for her care, then what they are doing would be legitimate. If her assets do not need to be liquidated to provide for her care, then what they are doing might not be legitimate at all. Your uncle however would be the person in the best position to do something about it.

Yes thank you, I will be telling them what they are doing. Grandma has millions and financially is well taken care of. They said they need to buy her shares so that she gets taxed less. I was just wondering if it was legal, since when she was of sound mind she wanted us to get the shares in her will.

 

[OHRoadwarrior]

It sounds like they are violating their fiduciary duty to make sound decisions for her to profit themselves. That is a criminal act. Contact the local District Attorney.

 

[Zigner]

It sounds like they are violating their fiduciary duty to make sound decisions for her to profit themselves. That is a criminal act. Contact the local District Attorney.

You may very well be right, but there isn't quite enough information to make such a definitive statement. It's entirely possible that the parents are paying the full value, or even greater than the full value, for the stocks.

 

[TimStudiesLaw]

The shares aren't yours yet. The will has no effect until she dies.

 

[justalayman]

The answer to your basic question is as tim stayed;

They aren't yours unless grandma dies while still owning them

Yes, any property a testator specifies in their will can be sold, destroyed, lost, or given away prior to the death of the testator. The will can only direct assets still owned by the testator at the time of their death. If she doesn't own the shares, she can't give them to anybody via the will.


What the others were speaking of is the fact your parents are the agents of your grandmothers POA. That puts them in a position where they must be cautious when making deals such as you describe. In itself it is not unlawful for your parents to buy your grandmothers shares. Where it gets sketchy is if they use their position as agent to take advantage of or swindle your grandmother. Basicslly, they are not allowed to personally benefit at your grandmothers expense.


As one poster stated, we don't know if they are being purchase for full value. If they are, generally it is not seen as an improper sale since they paid her what the shares are worth. There is more involved than that even if purchased at true value it could still be an improper sale but that gets into a lot of other situations.

If they are purchasing the shares at a big discount, it is generally not considered a proper action by the agent. If so, they could be subject to both civil and criminal prosecution.

 

[tranquility]

I agree grandmother has no heirs until she is dead. I also agree there is a possibility there is some breach of fiduciary duty if the stock is not being sold for a fair price.

However, there are other potential breaches of duty as well. One might be why the stock is being sold at all. It seems grandmother has enough money and the selling of the stock is not necessary. Part of being a fiduciary is doing what is best for the principal. Also, there is the duty of carrying out the principal's wishes. If the POA were to get double the value of the stock in payment, it could STILL be a fiduciary breach. The grandmother has expressed her wishes in the form of her will. Part of that gives the OP and the cousin stock as an inheritance. Say the will also has, other than the specific bequest to OP/cousin, the residual of the estate going to the parents.

Especially if there were no financial requirements of the sale, the POA would be shifting the OP/cousin inheritance to themselves in violation of the principal's wishes. Even if more were paid for the stock than it is worth.

While that does not give OP standing to sue (at least while grandmother is alive), he certainly should talk to grandmother to see if the stock sale is what she wants. If the parents were to prevent communication with grandmother, the OP should look into the elder abuse statutes/POA abuse statutes and remedies of the state.

 

[justalayman]

Fantastic info tranquility


One problem; grandma has dementia.

That obviously doesn't change the underlying information but is probably an issue in speaking with grandma. What's the next best move of grandma is far enough gone she is not competent?

 

[latigo]

What is the name of your state (only U.S. law)? California

My grandmother years ago had her will drawn up, leaving her shares in the family company to be split 50/50 between myself and my cousin. She now has dementia and my mom and uncle have power of attorney.
My parents and I do not have a great relationship, I've called them out on the way they run the family business and they did not like that.
My parents are now buying my grandmother's shares in the company, so they will own 100%. (After they bought out 2 others). They have not told my uncle their plans, they say they don't need to tell him ( other power of attorney, and father of the cousin who was also set to receive half the business).
My question is, if my grandma has already willed her shares to my cousin and me, can they be bought like this, leaving us to inherit nothing now? I was told by my financial planner (who is also my parent's financial planner) that because of my grandma's mental state that my parents could not touch her shares.

First of all until a will has been admitted to probate it has no legal force or effect whatsoever. So dispense with the notion that you have some vested property rights because of it. It is of no consequences to your "financial planning"!

Secondly, your "financial planner" neglected to mention this to you:

Should your parents somehow acquire grandmother's "shares in the company" you would have no standing to challenge the legitimacy of any such transaction such as to have it voided and set aside due to the state of grandma's mental incapacity.

Not unless you were somehow appointed as her conservator. Which doesn't seem likely since others would have priority of appointment.

 

[tranquility]

Fantastic info tranquility


One problem; grandma has dementia.

That obviously doesn't change the underlying information but is probably an issue in speaking with grandma. What's the next best move of grandma is far enough gone she is not competent?

If so, the only option (Before grandmother dies.) is to look here:

http://ag.ca.gov/bmfea/pdfs/citizens_guide.pdf

After? Get an attorney and fight it in probate.

 

[curb1]

Wouldn't it be appropriate to firstly get grandmother's dementia documented (perhaps this has already been done). Secondly, can grandmother sell the shares to her powers of attorney if she is mentally incapable? Just wondering.

 

[justalayman]

Wouldn't it be appropriate to firstly get grandmother's dementia documented (perhaps this has already been done). Secondly, can grandmother sell the shares to her powers of attorney if she is mentally incapable? Just wondering.

the POA as grandma's POAA can sell the property to themselves as a person.

that was why all the discussion of possibly improper actions as a POA.