Can a Grandchild Qualify Under the Caretaker Child Exception for Transfers?
On the advice of my mother's attorney and because of my mom's advanced dementia, we were encouraged to transfer th...
Read moreWhen a sibling steps up to cover a parent’s medical bills, internet, or other living costs, it’s a generous act. But what happens after the parent passes away? Can that sibling be reimbursed from the parent’s estate before the inheritance is divided among all the children? This is a common legal question, and the answer often depends on a few key factors.
In most cases, a sibling who pays for a parent’s expenses during their lifetime is not automatically entitled to reimbursement from the estate. Unless there was a clear agreement, the law generally views these payments as gifts or voluntary contributions, especially when made by a child for a parent.
There are specific situations where a sibling might have a claim for reimbursement:
The biggest challenge in seeking reimbursement is proving that the payments were intended as loans, not gifts. Without clear documentation, the following obstacles may be more likely to surface:
If you’re a sibling helping a parent financially and you intend to be reimbursed, it’s essential to:
Get it in Writing: Create a formal written agreement, promissory note, or even a clear, signed letter from the parent acknowledging the debt and their intent to repay.
While it’s not impossible, a sibling’s right to reimbursement from a parent’s estate for expenses paid during their lifetime is not automatic. The key lies in the presence of a written promise or a clear, provable agreement from the parent to repay the funds. Without such evidence, courts often view these payments as voluntary contributions, making reimbursement difficult.
Consulting with an elder law or estate planning attorney is highly recommended to understand the specific laws in your state and to properly document any financial arrangements.
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