People can decide to change their wills and trusts whenever they choose, but elderly parents can be especially vulnerable to undue influence, particularly near the end of their life. The Rhode Island Supreme Court recently decided an estate administration case involving amendments made to a trust and partnership shortly before a mother’s death. The mother had three daughters and the suit was brought by one daughter against another daughter.
According to the court’s opinion, the mother created a trust agreement to distribute her assets upon her death, and also established a family limited partnership. The mother retained the general interest of the partnership, and two of her children retained an interest for the benefit of their children. She later gifted additional interests in the partnership to her children and grandchildren. Before the challenged amendments, the mother retained a 44.1 percent interest, the defendant daughter held 31.06 percent for herself and her children, and the plaintiff daughter had 24.84 percent for herself and her child. The mother eventually needed additional care and ended up moving to an assisted living facility.
Soon after, the mother tried to commit suicide in part because she said it was “the easiest way to give [her] house to [her children].” She was diagnosed as having bipolar disorder, depression, and mild dementia. In the following months, she transferred her remaining interest in the partnership to the defendant. She also appointed the defendant as trustee and made the other daughters’ interest in the trust conditional on the transfer of interest in the partnership to defendant. The trust was then amended to give two daughters and a granddaughter $2,000, and the rest to the defendant. The defendant also deposited additional money her mother received into her children’s accounts.