Get Out Of The Trust
Ryan lost his mom a year ago, and the house was left in a trust for Ryan and his siblings. His father is covering the mortgage at $2,000 a month. How can Ryan get out of this mess?
QUESTION: Ryan in Fort Wayne lost his mom about a year ago, and the house was left in a trust for Ryan and his siblings. His father is still covering the mortgage at $2,000 a month while his sister and her husband live in the house. How can Ryan get out of this mess? His siblings don’t want to let him out. Dave tells Ryan to put his foot down.
ANSWER: Here’s the deal: We’re not going to bail out anybody. We don’t want in this. We’re not going to write any checks. We’re willing to give up our interest. Draw up the paperwork. You can be as nice as you want to be or as tough as you want to be as appropriate to try and maintain the relationships, but it serves no purpose at all for you to let them be under the illusion that you’re going to support their stupidity. It doesn’t do them any good, because it makes them think they’ve got a crutch that’s not there. They’re going to reach for it and hit the floor, because you’re not going to pay any bills here. The way you state that is tell them you don’t want to cause problems for them, but you’re not ever writing any checks to support this deal. Because of that, you shouldn’t have the benefit. Tell them you’re surrendering your portion of the trust in equal amounts to each person remaining in the trust. You stand the best chance of maintaining the relationship with your siblings under those conditions.