Sibling Accounting & Buyout Demand Letters

Comprehensive guide to resolving disputes between siblings over inherited assets, family businesses, and estate distributions in California.

When parents die, siblings often find themselves joint owners of property, businesses, or other assets. This forced co-ownership frequently leads to conflict - especially when one sibling has been managing property or serving as trustee while others wait in the dark. A formal demand for accounting, followed by buyout negotiation if needed, is often the first step toward resolution.

The sibling dynamic: These disputes combine legal complexity with family history. You may have legitimate grievances about unfair treatment - but also decades of family dynamics at play. A demand letter should be firm on legal rights while leaving room for resolution that doesn't destroy family relationships permanently.

Common Sibling Conflict Triggers

After a Parent's Death

Inherited Property Conflicts

Pre-Death Concerns

Why Send a Demand Letter?

Purpose Why It Matters
Request information You can't evaluate the situation without knowing what's in the estate/trust
Assert legal rights Siblings often don't know their beneficiary rights - a letter educates everyone
Start the clock Formal demand starts deadlines for response and may protect statutes of limitations
Propose resolution First concrete proposal for buyout, division, or management
Create record Documents your attempts to resolve before litigation becomes necessary

Types of Sibling Demands

1. Demand for Accounting

You want to know what assets exist, what happened to them, and what you're entitled to. Used when a sibling is trustee, executor, or has been managing shared assets.

2. Demand for Distribution

You know what you're owed but haven't received it. Used when estate administration is complete or trust requires distributions but sibling hasn't paid.

3. Demand for Buyout

You want to exit co-ownership of property or business. Used when you're joint owners and want cash rather than continued shared ownership.

4. Demand to Partition

You want the court to divide or force sale of co-owned property. Used when siblings can't agree on what to do with inherited property.

5. Demand for Surcharge/Return

You believe a sibling-fiduciary has mismanaged or taken assets improperly. Used to recover losses from breach of fiduciary duty.

Timing matters: Trust and estate disputes often have short deadlines. California's 120-day trust contest period (Probate Code § 16061.7) and 3-year accounting objection period are critical. Don't wait.

California Legal Framework

Trust Beneficiary Rights

Under California Probate Code, trust beneficiaries have substantial rights:

Estate Beneficiary Rights

Beneficiaries and heirs in probate have rights under:

Co-Ownership Rights (Inherited Property)

When siblings inherit property as tenants in common:

Fiduciary Duties of Sibling-Trustees

A sibling serving as trustee owes you the same duties as any trustee:

Being family doesn't reduce duties: A sibling-trustee has the same legal obligations as a bank or professional trustee. "We're family" or "Mom wanted me to handle it this way" doesn't excuse failure to account, self-dealing, or breach of fiduciary duty.

Partition Actions

Under CCP §§ 872.210-874.240, any co-owner can petition to partition property:

Partition is a right - no co-owner can be forced to remain in co-ownership indefinitely.

Remedies for Breach of Fiduciary Duty

Under Probate Code § 16420, remedies include:

Statute of Limitations

Claim Time Limit
Trust contest (after notice) 120 days (Prob. Code § 16061.8)
Accounting objections (after accounting) 3 years (Prob. Code § 16460)
Breach of fiduciary duty 3-4 years from discovery
Partition No statute - right is continuous
Will contest 120 days from notice (Prob. Code § 8270)

Common Sibling Dispute Scenarios

1. Silent Sibling-Trustee

Situation: Your parent died and named your sibling as successor trustee. Months (or years) pass with no communication. You don't know what assets exist, what's being done with them, or when you'll receive anything.

Your rights:

Action: Send demand for accounting citing Probate Code §§ 16061, 16062.

2. Sibling Living in Family Home

Situation: Parent died and left house to all children equally. One sibling has been living there - rent-free - ever since. Other siblings want to sell or receive fair rent.

Your rights:

Action: Demand for rent or buyout, followed by partition action if no agreement.

3. POA Sibling Who Took Too Much

Situation: Before parent died, one sibling held power of attorney and made transfers to themselves - "gifts," "repayment of loans," or compensation for "caregiving."

Your rights:

Action: Demand for accounting of all POA activity; demand return of improper transfers.

4. Unequal Lifetime Gifts

Situation: One sibling received substantial help during parent's lifetime (house down payment, business investment, debt payoff). Parent's estate plan didn't adjust for this. Other siblings feel cheated.

Analysis:

Action: Review estate documents for equalization provisions; investigate source of "gifts."

5. Delayed Distribution

Situation: Estate administration or trust administration is taking forever. Sibling-fiduciary gives vague updates but doesn't actually distribute anything.

Common excuses:

Your rights:

Action: Demand for timeline and partial distribution; threaten petition if no response.

6. Family Business Disputes

Situation: Parent left family business to all children. One sibling works there; others don't. Working sibling takes high salary, makes decisions unilaterally, and never distributes profits.

Your rights:

Action: Demand for accounting and fair treatment; propose buyout if can't work together.

Resolution Options

Negotiated Settlement

Siblings agree to divide assets, buyout terms, or management structure.

Best when: Relationships aren't completely broken; everyone wants resolution.

Mediation

Neutral mediator helps siblings reach agreement.

Best when: Communication has broken down; need facilitation.

Buyout

One sibling buys others' interests at fair value.

Best when: One wants asset, others want cash.

Partition (Sale)

Court orders property sold and proceeds divided.

Best when: Can't agree on anything else; clean break needed.

Trust/Estate Litigation

Formal court proceeding to compel accounting, remove trustee, recover damages.

Best when: Fiduciary is breaching duties and won't respond to demands.

Evidence Gathering

Before sending a demand letter, gather what information you can.

Estate Planning Documents

☐ Parent's will (all versions if available)

☐ Trust document and amendments

☐ Power of attorney documents

☐ Beneficiary designations (retirement, life insurance)

☐ Any letters or notes from parent about intentions

Financial Records (if accessible)

☐ Parent's bank statements (last few years)

☐ Investment account statements

☐ Property records (county assessor, title search)

☐ Tax returns (if filed by sibling as fiduciary)

☐ Any accountings already received

Property Records

☐ Deed showing current ownership

☐ Property tax records

☐ Mortgage information

☐ Comparable sales for valuation

☐ Rental history if income property

Communication Records

☐ Emails with sibling about estate/property

☐ Text messages

☐ Letters received

☐ Notes from phone conversations

☐ Your written requests and their responses

Evidence of Problems

☐ Records of sibling's self-dealing transactions

☐ Evidence sibling is living in/using property

☐ Records of distributions received (or not received)

☐ Timeline of events

Valuation Considerations

For Buyout Negotiations

Key Valuation Questions

Strategic Considerations

Preserve Relationships If Possible

But Protect Your Rights

Common Mistakes to Avoid

Demand Letter Templates

Template 1: Demand for Trust Accounting from Sibling-Trustee

Use when: Your sibling is trustee of a family trust and hasn't provided information.

Re: Demand for Trust Accounting [Trust Name] Dear [Sibling Name]: I am writing to formally request an accounting of the [Trust Name] (the "Trust"), for which you serve as Trustee. BACKGROUND As you know, our [mother/father] passed away on [date]. Under the Trust, [I am/we are] [income beneficiary/remainder beneficiary/entitled to distribution upon termination]. Since [his/her] death, I have received [no information/limited information] about the Trust. I understand you have responsibilities and that administering a trust takes time. However, [X] months have passed, and I need to understand what is happening with assets that affect my interests. MY RIGHTS AS BENEFICIARY Under California Probate Code §§ 16060-16062, I have the right as a beneficiary to: • Be kept reasonably informed about the Trust and its administration • Receive information upon reasonable request • Receive an annual accounting (if I am receiving or entitled to receive income) ACCOUNTING REQUEST Please provide the following within 60 days: 1. TRUST DOCUMENT: Complete copy of the Trust and all amendments [if not already provided] 2. ASSET SCHEDULE: A schedule of all Trust assets as of [Parent's] date of death, including: • Bank and investment accounts with balances • Real property with values • Business interests • Personal property of significant value • All other assets 3. ACCOUNTING: From [Parent's] date of death to present, showing: • All receipts (income, asset sales, etc.) • All disbursements (expenses, taxes, fees, distributions) • Current asset values • Your compensation as Trustee 4. TAX INFORMATION: Copies of any tax returns filed for the Trust or estate 5. TIMELINE: When do you expect to make distributions, and how much? WHY THIS MATTERS I'm not accusing you of anything wrong. I simply need to understand: • What assets the Trust holds • What has happened since [Parent] died • When I will receive my distribution • Whether the Trust is being administered properly This is my right as a beneficiary, and providing this information is your duty as Trustee. RESPONSE Please respond within 14 days to confirm you will provide the requested information within 60 days, or to explain any issues. If I do not receive an adequate response, I may need to petition the court to compel an accounting under Probate Code § 17200. I hope that won't be necessary. I want to work with you to get this resolved, not against you. Please communicate. Sincerely, [Your Name] [Contact Information]

Template 2: Demand for Buyout of Inherited Property

Use when: You and sibling(s) inherited property together and you want out.

Re: Buyout Proposal - [Property Address] Dear [Sibling Name]: I'm writing about the property at [address] that we inherited from [Parent Name]. CURRENT SITUATION We have owned this property jointly since [Parent]'s death in [year]. Our ownership is: • [Your Name]: [X]% • [Sibling Name]: [X]% • [Other siblings if applicable] For the past [X] years, [describe situation - e.g., "the property has been sitting vacant" or "you have been living there" or "we have been renting it"]. I don't think this arrangement works for either of us long-term. MY PROPOSAL I would like to sell my [X]% interest in the property. I propose the following options: OPTION 1: YOU BUY ME OUT • Fair market value of property: approximately $[amount] (based on [comparable sales/appraisal]) • My [X]% share: $[amount] • Payment: [lump sum at closing / structured payments] • Timeline: Close within [60-90] days OPTION 2: I BUY YOU OUT • If you prefer cash over the property, I am willing to purchase your share on the same terms OPTION 3: SELL TO THIRD PARTY • We list the property for sale at fair market value • Divide proceeds according to ownership percentages • Split selling costs proportionally [If sibling has been living there:] Note: If you have been occupying the property, my share should also reflect fair rental value for the period of your exclusive use, which I calculate at approximately $[amount]. WHY THIS IS FAIR As co-owners, neither of us can be forced to remain in a joint ownership situation that doesn't work. I have the right to partition the property - meaning I can ask a court to order it sold and divide the proceeds. I would prefer to resolve this between us. NEXT STEPS Please let me know within 30 days: • Which option you prefer; OR • A counter-proposal If we can't agree, I will file a partition action to force a sale. Partition costs money (attorneys, referee, etc.) that reduces what we both receive. A negotiated buyout is better for everyone. I hope we can resolve this as siblings rather than through lawyers and courts. [Your Name]

Template 3: Demand for Accounting of POA Transactions

Use when: Sibling held power of attorney and you have concerns about transactions.

Re: Accounting for Power of Attorney Transactions [Parent Name], Deceased Dear [Sibling Name]: As you know, you held power of attorney for our [mother/father] before [his/her] death. I am writing to request an accounting of all transactions you conducted under that authority. WHY THIS MATTERS An agent under power of attorney is a fiduciary. That means you had legal duties to: • Act in [Parent's] best interest, not your own • Not engage in self-dealing without explicit authorization • Keep records of all transactions • Be prepared to account for your actions Now that [Parent] has passed, [his/her] estate (and beneficiaries) have the right to know what happened to [his/her] assets during the period you served as agent. CONCERNS I have questions about transactions that occurred while you held the POA: 1. [Describe specific concern, e.g., "A transfer of $50,000 from [Parent's] account to you on [date]"] 2. [Example: "The addition of your name to the deed of [property address]"] 3. [Example: "Checks totaling $X written to you during [time period]"] 4. [Example: "The sale of [Parent's] [asset] and what happened to the proceeds"] These may have perfectly good explanations. But I need to see documentation. ACCOUNTING REQUESTED Please provide: 1. Complete bank and investment account statements for all of [Parent's] accounts from [date you became POA] through [date of death] 2. All checks written on [Parent's] accounts, front and back (to show endorsements) 3. Any real estate transaction documents (deeds, closing statements) 4. Documentation of any "loans" repaid to you from [Parent's] funds 5. Documentation of any "gifts" made to you or anyone else 6. Records of any compensation you received for serving as agent or caregiver 7. Your written explanation of any transaction that benefited you personally DEADLINE Please provide this accounting within 45 days. CONSEQUENCES I hope the transactions have innocent explanations and documentation to support them. If so, this can be resolved. If you fail to provide an accounting, or if the accounting reveals improper self-dealing, [Parent's] estate may need to pursue claims against you for: • Return of improperly transferred assets • Breach of fiduciary duty • Elder financial abuse (if [Parent] was 65+ when transactions occurred) Under California law, these claims can include double damages for bad faith and attorney's fees. I don't want to file a lawsuit against my [brother/sister]. Please provide the information so we can put this behind us. [Your Name]

Template 4: Demand for Rent from Sibling Occupying Property

Use when: Sibling is living in inherited property without paying rent.

Re: Fair Rental Value - [Property Address] Dear [Sibling Name]: I'm writing about your occupancy of the property at [address] that we inherited from [Parent Name]. CURRENT SITUATION Since [Parent's] death on [date], you have been living in the property. We are [equal owners / you own X%, I own X%] as tenants in common. You have not been paying rent to the other owners for your exclusive use of the property. YOUR OBLIGATION Under California law, when one co-owner has exclusive possession of jointly owned property, they owe fair rental value to the other co-owners. This is because: • We each have an equal right to possess the property • Your exclusive occupancy excludes me from using my ownership interest • The law does not allow one co-owner to have sole benefit of jointly owned property FAIR RENTAL VALUE Based on comparable rentals in the area, the fair market rent for this property is approximately $[amount] per month. Your share of the rent: [Your ownership %] × $[rent] = $[your monthly share] My share of the rent owed to me: [My ownership %] × $[rent] = $[monthly amount owed to me] For the [X] months since [Parent's] death, you owe me: $[total] DEMAND I demand that you either: OPTION 1: PAY FAIR RENT • Pay me $[total] for past occupancy • Begin paying $[monthly amount] per month going forward • We continue as co-owners with you as tenant OPTION 2: BUY ME OUT • Purchase my [X]% interest at fair market value • Fair market value of property: approximately $[amount] • My share: $[amount] • Credit for rent owed: $[amount] • Net buyout: $[amount] OPTION 3: SELL THE PROPERTY • List property for sale • Divide proceeds per ownership • Credit me for rent due from proceeds DEADLINE Please respond within 21 days with your choice of option or a counter-proposal. If we cannot agree, I will: • File a partition action to force sale of the property • Seek a court order for rental value owed I would prefer to resolve this between us. But I cannot continue subsidizing your housing at my expense. [Your Name]

Template 5: Demand for Distribution from Sibling-Executor/Trustee

Use when: Administration should be complete but you haven't received your share.

Re: Demand for Distribution [Estate/Trust of Parent Name] Dear [Sibling Name]: I am writing to demand distribution of my share of [Parent's] [estate/trust]. BACKGROUND [Parent] passed away on [date], now [X] years/months ago. You are serving as [executor/trustee]. Under the [will/trust], I am entitled to [describe - e.g., "an equal share with my siblings" or "specific bequest of $X" or "X% of the residue"]. ADMINISTRATION STATUS Based on what I know: • [Parent's] debts should be paid by now • Taxes should be filed • Assets should be gathered • Nothing should prevent distribution Yet I have received [nothing / only $X as partial distribution / no distribution since partial payment on X date]. DELAYED ADMINISTRATION IS IMPROPER You cannot hold onto trust/estate assets indefinitely. Your duties include: • Administering the estate/trust within a reasonable time • Making distributions when appropriate • Not withholding distributions for personal reasons If there are legitimate reasons for delay (pending claims, tax issues, litigation), you should explain them. Silence is not acceptable. DEMAND 1. IMMEDIATE PARTIAL DISTRIBUTION: Distribute at least $[amount] within 30 days, representing [e.g., "50% of my estimated share" or "liquid assets available"] 2. ACCOUNTING: Provide a complete accounting showing why full distribution hasn't occurred 3. TIMELINE: Provide a written timeline for final distribution 4. REGULAR UPDATES: Provide monthly status updates until distribution is complete CONSEQUENCES If I do not receive a partial distribution and accounting within 30 days, I will: • Petition the court under [Probate Code § 17200 (trust) / § 11050 (estate)] to compel distribution • Request that the court remove you as [trustee/executor] for failure to perform • Seek my attorney's fees from the [trust/estate] I understand you have responsibilities, but [X] years/months is too long. [Parent] wanted us to receive our inheritances - not to wait forever while you hold onto everything. Please distribute my share. [Your Name]

In a Dispute With Your Sibling Over Inheritance?

I help siblings resolve disputes over family assets, trusts, and estates. Here's what I can do for you:

  • Review trust and estate documents to explain your rights
  • Draft and send formal demand letters
  • Obtain accountings from sibling-fiduciaries
  • Negotiate fair buyouts of inherited property
  • File partition actions when necessary
  • Pursue claims for breach of fiduciary duty
  • Represent you in mediation or court proceedings
  • Protect your interests while preserving family relationships when possible
Typical costs:
• Document review and rights consultation: ~$450
• Demand letter for accounting: ~$450
• Demand letter for buyout/distribution: ~$450
• Partition action: ~$240/hour
• Trust/estate litigation: ~$240/hour

Schedule a Consultation

Book a paid consultation to discuss your situation.

Email: owner@terms.law