Trustee Not Acting in the Estate’s Best Interest

Dear Phyllis,
I find myself in a difficult situation. My deceased husband’s brother passed away without a spouse or children. He left 1/3 of the estate to my sister-in-law, the trustee. I get my husband’s 1/3 interest and the remaining 1/3 interest is divided between five nieces and nephews. His brother passed away 18 months ago. Immediately after passing, my sister-in-law moved her 40-year-old daughter into the house. After all of this time, they now tell us she wants to buy the house. This niece has been living in the house rent-free for 18 months. And now she offered the price on the appraisal from 16 months ago. I am uncomfortable with her buying the house; I feel like we are getting railroaded. I understand from years of reading your real estate column that my sister-in-law has a fiduciary duty to the estate. What do you do when the trustee is not acting in the estate’s best interest?
Dorothy

Dear Dorothy,
Thank you for being a loyal reader! I am sorry that you find yourself in this position.
It seems reasonable that her daughter has an opportunity to purchase the home. However, the home should be listed in the multiple listing service. Then, she should be able to match the highest-priced offer received. I had a similar situation several years ago between two siblings. However, they were co-trustees. I listed the home for sale and received an offer over the asking price and then one of the siblings decided to buy the other out, matching the highest offer.
I am not an attorney and cannot offer the legal advice you need. Before seeking an attorney’s council, perhaps you can meet with your sister-in-law and as many of the nieces and nephews as possible, representing a majority against her 1/3 interest.
It is crucial to remind your sister-in-law of her role and responsibilities as the trustee. Her actions, such as allowing her daughter to live rent-free for over a year and not listing the home for sale, are not in the best interest of the estate. It is important to stress that you are prepared to seek legal counsel, if necessary, to ensure that the estate’s best interests are upheld. I wish you and your family the best of luck in resolving this as soon as possible.
Best regards,
Phyllis