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Sister's dishonesty regarding Loan against Estate and my current lawyer's inactivity on the case

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What is the name of your state?GA

My parent's died nearly 2 years ago. My sister was named as Executor/Trustee but also had a large personal loan taken out against her portion of the estate, to be paid off when both my parents passed. She has been dishonest and deceptive from the first. She and her lawyer refused to disclose the loan amount or send a copy of the Promissory Note for over a year. And her lawyer repeatedly has passed along my sister's lies and slander to discredit me with my own lawyers.

That worked well for them with my first lawyer, who clearly colluded with them and rubber-stamped everything they claimed. For example, her lawyer claimed she had no legal responsibility to disclose her loan or Promissory Note, citing a portion of the law that stated she had no responsibility to the Probate Court. I fired the first lawyer after 3 months and $3K as it was clear she was simply agreeing with everything they claimed and not genuinely representing my interests.

After hiring another lawyer, we agreed to distribute the property first, which was a bad decision on my part, but I was trying to be as cooperative as I could just to get through this (I am fighting two forms of terminal cancer). However, the process that I thought would take only a couple of months, turned out to be nearly a year. When we finally got around to discussing the loan, her lawyer again tried to deny that she had a responsibility to disclose the details of the loan. My new lawyer, however, cited another portion of the law that says that, although she wasn't responsible to the Probate Court, she was indeed responsible for financial accounting to the beneficiaries of the Estate, and as the Loan was against the Estate, she was responsible to disclose this information. My sister's lawyer then immediately responded with no further arguments, and sent a copy of the Promissory Note and a typed up list that was supposed to show payments she made during the last 6 months prior to my parent's death. It actually showed that my sister had made no payments for those six months, but one single "makeup" payment that was paid immediately following my hiring my lawyer.

So at that point we actually had written proof, from the Promissory Note and the lack of 6 months regular payments that she was in default on the loan for at least the last 5 months of the loan. The Promissory Note stipulated that if she went into default and a lawyer was needed to collect, she would be required to pay all legal fees and missed interest payments would be charged at 15% (much higher than the normal 4% interest payments she was making). We had a lot of proof by then (from emails and phone calls) that my sister had been lying to me from the very start and that they had continually refused to reveal the loan details until over a year after I first hired a lawyer.

Unfortunately, just when we had all the proof we needed to address these issues (this past September 2018) my lawyer quit the firm and turned me over to one of the Partners. It has been a disaster ever since. When I was able to get hold of the new lawyer, he seemed to understand the situation and be on the same page as myself. He was going to point out all the issues of her dishonesty and the fact that it was clear that I had been forced to hire legal representation because of this dishonesty and refusal to release the loan information. However, my lawyer then disappeared and did not return phone or email messages for six weeks. When I finally got hold of him, he said that he was a local city attorney and had been tied up with elections going on at the time. He promised me that was all over and he would be more involved in working my case. Unfortunately, that has not really been happening. He has gone multiple weeks at a time without giving me updates or returning my calls/emails. At one point, after not hearing from him for awhile, I was able to finally reach him and he told me that "Your case is important to you, but I have more important cases I'm working." He also said (very angrily) that, although they had no other lawyer available with his firm, he could refer me to some other outside lawyer if I wanted. However, he was already my third lawyer and I had already invested 3 months or so with him. We also had all the proof we needed in my sister's own writing. All that needed to happen was for him to put a little effort in conveying and arguing our case with the other lawyer. So I stuck with him.

Since the only proof we had of my sister's loan payments showed she was in default the last 6 months of the loan, I had him ask for proof of her payments from the year previous to my parent's death (2016). She eventually came up with a list of payments for the entire life of the loan and it showed she had been cheating on the loan payments, and thus in default, for all but the first 6 months of the entire life of the loan. Based on the original agreement at 4% (and not the 15% required for default) my sister had cheated the estate out of nearly a full year's interest ($8K) over the life of the loan.

At one point we received an email from her lawyer claiming she had always been honest with me, and that they would go after me for legal fees. Given the fact that he was forwarding all this information that clearly demonstrated she had not been honest, it became clear he was bluffing, and that my lawyer had also not conveyed the details of any of our arguments to him. So I wrote my own letter and had my lawyer review it and make it more concise. He said he had been too busy and thanked me for writing the letter, which he then sent. But that was after he had been my lawyer for 6 months and never conveyed basic information that we knew about when he first came on board.

So right now, we have an incredible amount of proof that my sister was not only in default on the loan but also that she has been dishonest with me since I first talked to her. However, my lawyer has once again disappeared into the woodwork for two weeks, and won't call to give updates. I am 65 years old and have hired a number of different lawyers up north over the years with no problems at all. But I am getting very frustrated and worn out by the fact that this should have been able to be settled months ago and I have no way to pressure my current lawyer to do anything at all on my case (other than send me bills for activities, most of which I doubt he ever did).

Any advice on what I should do?
 


Zigner

Senior Member, Non-Attorney
Your matter is far too complex for an internet forum. If you don't trust your attorney, get another one.
 

Dandy Don

Senior Member
You may NOT need a new attorney.

You may have placed an unrealistic expectation on your attorney. He/she can not force your sister to start repaying. Ask this attorney for a full refund or partial refund because they did not perform services for the reason you retained their services. Perhaps the attorney realized that and didn't want to have to explain that to you--hence, excuses for not meeting with you. It's hard to figure out what you expect an attorney to do in regards to this situation. Either your sister can afford to start paying or she can't afford to start paying.

Is it the language in the trust or in the will that asks your sister to repay the loan? How much is she required to repay?

What was the total value of the assets in the estate when it went to probate court?

Did she receive an executor fee (approx. how much was that) and did she receive a trustee fee (how much is that)?

Will sister be receiving a payout as a beneficiary of the estate and/or as a beneficiary of the trust?

Does Georgia law require that an annual accounting be sent to trust beneficiaries and has she been furnishing those statements?

Is probate finished now or is it ongoing?

Have you received any payout from the will or from the trust?

Are you named as a trust beneficiary and are there any other trust beneficiaries besides you and your sister?

What did she use the loan money for?

Does she work and does she have a good-paying job? Can she afford to make repayment or is she obviously stonewalling in an attempt to not pay off anything at all?
 
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Thanks for your response!

> He/she can not force your sister to start repaying.
We haven't gotten as far as that, but I am not expecting there to be any problem with her paying the principal. The problem is that my lawyer simply has not been active on the case at all. Soon after he took over the case, he disappeared for 6 weeks and I could not get hold of him and he would not return calls or emails. When I was finally able to talk to him, he said he had been too busy with local 2018 elections, as he is an attorney for a nearby city. He told me at that time that he had more time and would then be more active on the case. But this kind of thing has continued to happen repeatedly over the last 8 or so months, with not hearing from him at all for 2 or 3 weeks at a time, and very little progress.

As I mentioned, in spite of what he had told me, my lawyer had still not conveyed the basic arguments for our case after a number of months, and I had to write the letter that did so.

> Is it the language in the trust or in the will that asks your sister to repay the loan? How much is she required to repay?
I don't believe there is anything in the trust/wills regarding the loan. She signed a promissory note that had the details in it. The loan was to be paid off when my parents died, and she was required to make monthly interest payments until then. The only reason I knew about the loan was because my father had told me about it a few years ago. It is fairly clear that she was planning on hiding the loan until I brought it up. She only revealed what the principal was ($200K) over a year after I hired my first lawyer, and her lawyer's repeated denial that she had to reveal this information.

The assets have all been distributed with the exception of the loan principal.

> Did she receive an executor fee ....
I don't know about any fees. The will names her as executor and trustee, but does not mention any fees.

> Will sister be receiving a payout as a beneficiary of the estate
Yes, she has already received her portion along with my brother and myself. (Again, without including the loan principle yet).

> Does Georgia law require that an annual accounting be sent to trust beneficiaries and has she been furnishing those statements?

This is what I was trying to describe in my third paragraph. Her lawyer was claiming they did not have to reveal the Promissory Note and details of the loan. But the lawyer I had at the time (the one that quit the firm) told them that GA law requires her to provide annual financial accounting of the assets, which included the loan. My sister had never done that before. However, when my lawyer pointed this out, they immediately sent us the required information.

> Is probate finished now or is it ongoing?
Yes, I believe probate is finished.

>Have you received any payout from the will or from the trust?
Yes. Other than the loan principal, I have received everything from the trust that I esxpected.

> Are you named as a trust beneficiary and are there any other trust beneficiaries besides you and your sister?
Yes, my brother and I are both trust beneficiaries.

> What did she use the loan money for?
I don't know for sure, as she was keeping the loan "secret." However, I do remember around the time that she would have taken the loan she did a lot of home remodeling and started her own business as a Counselor. I was surprised when I saw that as her and her husband were always complaining about not having any money. So receiving the loan would explain the sudden influx of money at the time. But that is just my guess.

> Does she work and does she have a good-paying job? Can she afford to make repayment or is she obviously stonewalling in an attempt to not pay off anything at all?

She has an MA in Counseling and worked for some counseling group as an employee for a few years but wasn't making much money. She then opened her own counseling business, but from what she told me, the business was struggling. Her husband works for the State in Education as some kind of advisor to help kids get grants, scholarships and other financial aid. From what he says, he does not make that much money.

However, as she received the same amount from the trust as I did (over $250K) on distribution, she definitely has the money to repay.

The big issue now is that... due to her delays and denials, I have had to spend around $20K in legal fees (for 3 different lawyers) that I would never have spent if she had been honest and upfront with me from the beginning. According to the Promissory Note, if legal representation is necessary to collect on the debt, she is required to pay those fees out of her own funds. My last two lawyers agreed that this was reasonable, given she had lied to me from the very first and tried to avoid financial disclosure of the loan terms and payments.

Also, we have shown that she was in default for all but the first 6 months of the loan, and according to the Promissory Note, that means that she owes for the missed interest payments (at a higher interest rate). The PN also states that she can't change the terms of the loan (i.e. by paying less that the required monthly interest) without it being in writing, signed by my father, which she does not have.

I have considered hiring another lawyer, but I am already on my third lawyer, due to the one lawyer quitting the firm, and my sister's lawyer has made disparaging comments about my having to hire multiple lawyers to handle my case. I also am getting very disenchanted with GA lawyers because of this. I don't know how to find one that I could know to be honest and put effort into my case. My first lawyer was recommended by a GA Senior Legal help group, but as I described, she was not representing my interests and I fired her. If I got a new lawyer, he/she would have to come up to speed, and that would take more time and money.

Thanks again!
 
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Dandy Don

Senior Member
Does the promissory note mention any consequences if the loan is never repaid?

What were/are the legal specialties of the attorneys you have already hired--are they mainly probate and estate or trust attorneys, or do any of them have a background in business law? You need a business law attorney (who has experience in suing individuals who owe outstanding debts) to bring a suit against your sister, so that you can win a judgment that you can begin collecting on.

And ask the attorney to explain to you in detail, before you hire him or her, exactly what procedures or steps will be taken to collect on the judgment.
 
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> Does the promissory note mention any consequences if the loan is never repaid? '

The second paragraph at the top of the Promissory Note states:

"The Undersigned shall also pay all costs of collection including fifteen (15%) per cent of the principal
and interest as attorney's fees if collected by or through an attorney at law.
"

Under the "Default" section, it states:

"If the Undersigned fails to pay when due any amount payable hereunder including without limitation
delinquency charges, then the Undersigned shall be in default hereunder. In the event of a default,
the total unpaid balance hereof may be declared, and thereupon immediately shall become due and
payable, and such balance shall bear interest at the rate of four (4%) per cent per annum until paid."


In the final section regarding "Payment of Note Upon Death of the Co-Trustees" it states:

"If the outstanding principal balance under this promissory note exceeds the share due [my sister] as
a beneficiary of the Family Revocable Trust. then [my sister] personally will owe to said Trust. the
difference between the remaining principal balance of this promissory note and the share due her as
a beneficiary of the Trust
."

Looking at the payment documentation she provided under pressure, she only made regular required full monthly payments for the first 6 months of the nearly 6 year life of the loan. She then made three monthly payments that were short by between $40 and over $300 (nearly half the payment). She followed with 6 months of correct payments, although some of them were totally missed and made up with a late payment in a subsequent month. Following this, all of her payments were short by varying amounts. The pattern appears suspiciously like she was testing the waters to see if my parents noticed the short payments. I should also mention that my mother never had anything to do with their finances and has had dementia for the last few years before death, and my father has been legally blind with macular degeneration since the early 1980s. I.e. it is highly unlikely that he ever verified any of her checks that he signed for deposit.

As I mentioned, I did a quick summary and found that the total of all her missed payments over the life of the loan amounted to around a year's interest payments, nearly $8K.

>What were/are the legal specialties of the attorneys you have already hired--are they mainly probate and estate or trust attorneys ...

My first lawyer was recommended by the GA Senior Legal hotline as a Probate and Estate Lawyer, and her website states she specializes in Estate and Probate law. The firm my last two lawyers worked for says on its web page "Probate and Estate Planning" among many other things. My second lawyer (first with this firm) did indeed work Probate and Estate Planning cases and she did a great job. She was the one who forced my sister to disclose the Promissory Note and Loan Principal as well as the last 6 months of my parent's life when my sister was not making any of the monthly payments. Unfortunately, she left the firm right at that point.

The Partner who took over the case said they had no other associate lawyers to assign the case to, and that he was heavily involved in local politics (thus the initial 6 week delay on working the case during 2018 local elections). I just looked on LinkIn and it states he has specialties in: "
Local government law, Real estate transactions, Land use/zoning law, and General civil practice." He is also active in Business and Civil litigation. Another website indicated that he worked government law for 50% of his time. So nothing in Probate and Estate law.

His degrees include an "ABJ" (Bachelor of Arts in Journalism) in "Print Journalism" from University of Georgia, followed by "Comparitive International Law Study Program" via University of GA School of Law.

Looking at it now, he was a very bad choice. However when my previous lawyer left the firm she gave him a good recommendation and never told me he did not work in Estate and Probate law, so I had no reason to suspect otherwise. They also had no one else to put on the case and I would have had to start all over again with a different firm otherwise. And I have been working with this firm for over a year (now a year and 8 months).

> You need a business law attorney .... And ask the attorney to explain to you in detail, before you hire him or her, exactly what procedures or steps

That is great advice. I have never had any legal issues in the past that lasted this long with so much attorney problems, so I never thought to ask anyone about these things, esp when they were recommended by a lawyer that I liked. I see now that I would have saved myself a lot of grief if I had researched this last lawyer before just going with him.

Thanks again for the great advice!
 

Dandy Don

Senior Member
Who was the person that assisted your parents with managing their finances (paid their bills, made deposits, etc.)?
Was it someone they hired (an accountant), a relative, a friend of the family?
Did they give that person a signed power of attorney (it's not really relevant--I'm just curious).
 
I can't really say for sure. I have always assumed my sister was handling their finances, at least for the last 5 years or so ... and that is a pretty safe bet. That is likely the reason why she thought she could get away with not revealing the loan upon their deaths. If my father hadn't told me about the loan, its highly likely it would never have been acknowledged and paid off.

My parents were retired and well settled in Florida since around 1980. They had many friends who looked after them and their church provided many services to the elderly, and they had very good doctors/medical facilities. I had also been trying to find a way to have my company transfer me down to Florida but that never worked out. In 2004, around the time the Trust was setup, my sister convinced my parents to relocate up to GA, 15 minutes from where she lives, so she could handle their medical treatment and "look after them." They told me many times in the subsequent years that they regretted making the move, but felt pressured by her.

I have always assumed she had power of attorney and handled their finances and medical treatments, at least for the last 5 years or more, and likely since they moved to Florida. But no one has ever told me anything about that, so that is just a well-informed guess on my part.

Thx
 
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