Sibling Disputes Over Inheritance: Seeking Transparency and Fairness

Introduction: Missing Inherited Funds

One of our readers, Liz, has recently shared that her mother passed away, leaving behind a substantial savings account and two retirement accounts collectively valued at $400,000. Liz’s sister, who is managing the legalities, initially mentioned that Liz would receive a portion of the inheritance.

However, Liz is now being told, “I don’t know where the money has gone.”

Given that the sister was responsible for their mother’s finances for years prior to her passing, this situation seems rather peculiar to Liz.

The Dilemma: Seeking Financial Clarity Without Conflict

Liz is now faced with a conundrum. She’s unsure how to approach this situation without the means to enlist an attorney or the desire to cause familial discord or appear greedy. So, what should she do?

Analysis: Possible Scenarios of Missing Inheritance

Given her sister’s involvement in managing the estate, it’s likely she knows where the money went. The conundrum is why she’s not sharing this information with Liz.

It’s possible that the funds were depleted by long-term care expenses, which, as we all know, can be enormously costly. This scenario is plausible if there was a significant delay between the sister’s disclosure about the accounts and their mother’s passing.

However, if that were the case, the sister could simply explain this to Liz.

Other possible circumstances include financial elder abuse, gambling, or scams. Sometimes, abusers can be known people, including caregivers or relatives.

Liz’s sister might also have arranged to be the sole beneficiary of the accounts, either with or without their mother’s consent.

Advice: Diplomatically Seeking Financial Transparency

If Liz is not in a position to consult an attorney, her options may be limited. However, it wouldn’t be a sign of greediness if she asked her sister for more clarity regarding the funds.

For more insights on personal finance and inheritance issues, check out the resources by Liz Weston, a Certified Financial Planner and personal finance columnist for NerdWallet. You can send your queries to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com.