The named executor ( relative) has not acted as executor and the 2nd executor is our brother. Who owned a business who rented the building for said business from my father and mother and lease payments our father had him pay 1/2 to him and send the other 1/2 to the bank to pay the mortgage.
He sold his business and the building acting on behalf of my mother. He also has power of attorney over mother. He nor his business is or was on the title. It was under my mother and fathers Trust. And mother and father owned the building. Now he wants half the proceeds...which is over a 1/4 million. He wants a family meeting to tell this this. Does he have a leg to stand on? Wouldn't he have had to lay claim before the new title was drawn up at the sale? The bank holds the trust.
Without reviewing documents it is impossible to say what might or might not happen here, but you are confusing a couple of things that it is important not to scramble around in order to help keep things straight. First of all, an 'executor' (Michigan uses the term Personal Representative) is only in charge of probate / will proceedings. They will not control a trust. Powers of Attorney MUST act in the principal's best interest (so your brother would have a hard time legally justifying taking your mother's assets and converting them to his use!) and you mention that there is a bank involved -- I assume a trust company or trust division of a bank?
My first step would be to get copies of the trust and all the other relevant documents from that bank. If you are named as a contingent beneficiary they should share it with you without too much issue. Once you have that in hand, you should seek out your OWN legal counsel to read through things and determine what sorts of protections are available for your mother.
Don't delay and don't wait for a 'family meeting' to start the process. And DO hire someone to help guide you through the process.
Mr. Zichi has already provided you with an excellent answer and I agree with him. There is nothing in your facts which suggests ANY basis for your brother to claim half ownership of the property. Having said that, since this is a family transaction there are OFTEN situations where deals were made and not properly documented. Was your brother paying rent, or was he buying the property under land contract? If he can come up with facts that would support the latter, then he could prevail.
This is not something to mess around with, since there is a lot of money at stake. Your mother should have legal representation if your brother persists in his claims. He cannot represent her and himself at the same time. He has a built in conflict of interest, here, and if he is smart, he will involve his OWN lawyer, and might take this to court himself, to have a judge approve his plan. If the bank is acting as trustee, then it will undoubtedly respond through its legal department, on behalf of the trust. The bank's position on this might be a lot different than that of yours, however, because one of their primary concerns will be the liability of the bank.
The family meeting is probably a very good idea. Whether you involve a lawyer depends on what transpires. Without a legal agreement proving that your brother's "rent" was actually a "purchase" of the property, I do not think he is in a strong position.
James Frederick
I agree with the previous answers and would also agree that talking to a lawyer prior to a family meeting is a good idea. That will help narrow down the legal issues and perhaps provide a framework for the meeting. Your brother is a fiduciary and should be making decisions that are in the best interest of your Mother. Additionally, if she is receiving in-home care now and there is a possibility that she will need to be placed in a nursing home there are issues with Medicaid and divesting assets that should be considered.
