executor ,also an heir

[GROEDER]

my mother-in-law died leaving her estate to be divided up by her 3 siblings, the youngest sister is the executor, the decendent IRA was splitup 3 ways, giving each sibling, 16,700. my wife the oldest sister, sighned over the check to her sister, to help pay her bills, (she has a gambling problem) now the executor, is claiming the money was a gift. (even though we have to pay taxes) can she do that?

 

[advisor10]

2-23-2002

DEAR GROEDER:

Yes, it is a very weak excuse, but she probably will be able to get away with it.

Your wife made the mistake of not getting any written documentation in advance (some type of agreement for the gambler to repay this money, or your wife could have even made a notation on the bottom left-hand corner of the check, saying "loan"). What was she thinking--didn't she know that someone with a gambling addiction is notorious for not being responsible with money?

SINCERELY,

advisor