• 04
  • February
    2011

A woman with mental disabilities who was the beneficiary of a trust, was the victim of a trust violation by her uncle, her sister, and her former attorney. A jury recently decided that the trio violated the trust by selling the family house without the woman's knowledge, and then not sharing the proceeds with her.

The woman who was cheated is 76 years old and confined to a wheelchair. She suffers from mild retardation and cannot read or write.

A trust was established in 1989 for her care. Her father set up the trust before his death. As part of the father's will, the woman had a life estate in the family home, meaning she could live there and that the home could not be sold without her consent. The woman's uncle was appointed trustee and instructed to pay for the woman's care and expenses with funds from the trust.

The woman moved to a nursing home in 2000 due to medical complications. The former attorney then visited the woman in the nursing home and had her sign over power of attorney to the woman's sister.

Soon after this the uncle, the sister and the former attorney sold the home without the woman's knowledge or consent. Proceeds from the sale were distributed to family members, but not to the woman.

A court-appointed conservator sued the trio on the woman's behalf, on the grounds of financial elder abuse, fraud, concealment, conversion, breach of fiduciary duty and negligence.

A California jury found all three liable for conversion, which is a civil court cause of action for theft.

The former attorney was found to have committed financial elder abuse and breach of fiduciary duty.

The trio owed $99,900 in compensation, and the former attorney was ordered to pay $321,000 in attorney fees and costs. The attorney was held to a higher standard of responsibility, because she could not claim that she did not understand that her actions violated her duties to the woman.

Florida estate planning attorneys noted that the trio appealed the decision, but lost on appeal. The woman's life estate in the home meant that any proceeds from the sale of the home had to be used for her benefit.

Estate planning is an area of the law where unscrupulous people frequently try to steal other peoples' inheritances. The services of an experienced and trustworthy will and trust attorney are especially important.

Source: Westlaw News & Insight "California appeals court finds disabled woman's family violated trust" 2/3/2011