YIn California, I am a limited partner With my two sister of a FLP, my older sister recently became the General Partner. She is also in line as the executor of our widower (2011) father's Family Trust of which she my younger sister and I are equal beneficiaries. He has terminal cancer, is 89, and has been given a few weeks to live; she has been actively involved in all areas of his finances for the past 8-10 months, her daughter-in-law is an estate
atty and has been helping her for a "nominal fee" which she refuses to disclose to the beneficiaries. She also refuses to disclose the holdings in the Family Trust and the rest our father's estate.
Can she legally withhold this information from beneficiaries?
Can they legally change the terms of the Family Trust without him initiating the changes but rather convincing him the changes are necessary and/or getting him to sign a power of atty?
They have amended certain clauses, have transferred two of his real Estate assets into the FLP, one being the family home and are now charging him 5000.00 per month rent to rRemain in it, without distributing any of this new income to the limited partners.
They are using this income to upgrade and remodel a second vacation home that was also moved from the Family Trust into the FLP.
Is this common financial management?
Is it a conflict of interest that her daughter in law is "advising" our father yet her advice results in reinforcment of our sister's interest in taking over the Family Trust, having already taken over the FLP? (from which we have no K-1 for 2012 showing the transferred assets yet!)
Anything short of suing I can do to compel her to produce the FLP 2012 K-1? Or to stop her from transferring assets out of the Family Trust with my father still living?
Conversely, can she legally, upon his death, choose NOT to dissolve that trust to distribute equal inheritance to the 3 beneficiaries as my father intends?
The Family Trust has a clause that prevents beneficiaries from suing it upon penalty of losing beneficiary status, and compels the estate rather than the executor/successor to fund a defense against legal action.