Can an executor of an estate and/or trustee of a irrevocable trust borrow money from their parent?

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and what would you do to protect yourself

Answers 1 to 10 of 16
No. Your duty is to act on your parent's interest, not your own.
It depends on what the document states...executors have no power until parents death......trustee manages the trust. As the person said before me, generally, the asets are for the benefit of the beneficiary stated in the document... not the trustee. I am not an attorney...double check.
Typically this is avoided. Please check with an attorney before attempting this. It might be possible for the trust to make such a loan but it would likely require clear paperwork and a competitive interest rate. It should look on the surface like it is a good deal for the trust, not an advantageous situation for the Trustee.
Top Answer
Not if you want to stay out of jail. You being Executrix has a legal fiduciary responsibility that does not allow you to "borrow" from your wards. How would you like it if your bank just "borrowed" some money from your account without your knowledge. No, get your money from somewhere else. Earn it or borrow it from a bank or loan shark. Merry Christmas!
Absolutely not! I am executrix of my father's will. I am being sued by my stepmother's POA who squandered HER assets, then came after my father's assets. He is home free because she won't ask him for an accounting but I had to prove where I spent every penny. I came up clean. But he got away with it. DO NOT take a penny. It will bite you in the a** if you do!
Why would you want to?
As executor of the estate, no.. absolutely not. .
As for the trust, it depends entirely on how the trust is worded. Each trust is a unique document and must be carried out as it is written, or amended.
NO! The executor is supposed to pay the bills and distribute the estate. Creating a loan to yourself would be a conflict of interest.
My 84 year old widowed mother, since 1998, was a very vibrant and church going woman, asked our younger sister (who lives in the same town) to help her with writing out checks (from mother's checking account) to pay her bills. At that time mother was 69 years old) The sister added her name to mother's checking account. We (3 other children) all assume that was a good idea. For what ever reason, the sister started treating mother as if she was disabled - mentally and physically. She asked mother to allow her to be the "Power of Attorney", and "Executor" of her Will. As open minded as we should be, we all thought that was a good idea, even though it was not shared with the other children that she was going to to this until it was done. Since then mother, while living on her own became very dependant upon the sister - who also has a day job. The sister over the course of years would tell mother that no one cared about her and she would take care of her. This of course went on for years and mother began depressed, would stay in bed 24/7 waiting for the sister to bring breakfast, lunch and dinner. Each of the other siblings would question that mother it too young to stay in bed day and night. I said I believe mother is depressed and should get out to see people. But the sister did not pursue the suggestions. Each of the siblings would do what we could - I, who live long distance would travel to see her and would notice how mother would talk about each of the children - as if we did not care for her. We feld sad because that was not true. Each of us would send money or come in town to visit frequently. I even considered moving in with my mother to help take care of her. I tried that but it did not work when my sister saw that I was placed on mother's home owner's insurance. The sister went to the insurance agency and threatened them with the "power of attorney" to remove my name - they did so. That was a little odd. The sister moved mother in with her and we thought that was a good idea. We would come and visit, help with groceries, etc. But when asked about mother's finances and budget, the sister would say "we don't have a budget". I say a red flag. Mother draws social security, but the sister will not disclose any of mother's financials. Mother's memory was showing signs of dimentia. She would repeat questions, etc.

Mother has a car, it has disappeared. The sister, just a few months ago, had her pastor move into mother's house and did not tell any of us about that until each of us received letters 1 months after the pastor moved in. And by the way he is not paying rent! When I called my sister long distance and asked her about it, she said "it was none of my business" and "I have no say so in the matter" - that was between she and mother. I became livid and want to do something about this as soon as possible, but don't want to cause my mother any pain.

It is 15 years later (present time), and my sister does not offer to tell us about any of mother's affairs. She leaves mother alone a lot and the level of care is not good in terms of hygiene, etc. I feel mother is dwindling away.

I just visited her on Thanksgiving - it was a chilly welcome from my sister, but I had to see my mother. She (mother had the greatest smile) and was very happy to see me. She wants to come and visit me for 2 weeks. I want her much longer. But the sister doesn't think it's a good idea "because she's too old".

While I have written and said much, my gut feeling is that my sister is abusing the estate of my mother and is not caring for her. Is there a way to have two "Power of Attorneys". I and another sibling feel something needs to be done and soon. What do you think. Always want to do the right thing for all.

sps5932
No, but if it does happen. Two of my siblings were executors of mom's will. One of them also used to be POA. Both borrowed money. Both are no longer executors of mom's will and also one is no longer POA.. I am now POA and executor of mom's will. Mom's attorney explained to her (and me) anyone who has "borrowed" money from someone's estate should not be an executor or POA and so updates and changes were made.......and now I rest easy knowing everything is as it should be.........

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