My sister listed me as beneficiary on her savings account. The bank informed me that the funds were mine and that I would not have to pay taxes on them. I've since used most of the money to pay my sister's debts (credit card, ambulance/ER costs, funeral expenses, etc.) because I know that is what she would have wanted. The amount left in the account covers what she felt I should have for managing her estate
plus enough to cover ongoing expenses (house insurance, lawn maintenance, etc.).
I should add that my sister's will was hand written and did not have witness signatures and, because of that, probate
court determined that there was no will. I was named as personal representative. Now, her house will be put on the market and I'm told that any money from the sale (if there is anything left after liens are addressed) will be divided between me and my two siblings. Those siblings stopped relating to my sister 20 years ago and she made it clear (verbally and in the hand written will) that I was to give all money from the sale of her belongings and house to a specific charitable organization.
So, do I need to continue to pay expenses out of the savings account or taxes on the portion she gave me for managing the estate? Is there anything I can do to make sure the money from the house goes to the organization instead of my siblings?