Family Verbal Agreement

[Kacey]

My Father started a very small business a year before I was born.  It is no secret throughout all relatives that anyone of his three children who worked with him would get the business.  The term passed around was "lock stock and barrel."  I am the only one who said yes.  Started working with my Father at age thirteen.  I have worked in the business for over thirty years.  The last twenty years consecutively.  My sister who has never worked in the business at all and has never worked full time anywhere in the last sixteen years became POA.  This is where my problems began.  She hired a an "elderly estate planning advisor" After a meeting we had with him is did some research and found that he was bad news.  I printed the information I found and gave it to her and said "we need to get rid of him"  Months later I come to find that she started to follow his plan by way of liquidating my Parents assets and closing CD's that were not mature.  

Download copy of documentation I presented to my sister:http://download.yousendit.com/8A8E079837E962C5 With my sisters poor management at a fast pace with little forethought placed my parents into an expensive assisted living facility about a year ago.  I talked to my Mother about less expensive options to live within their means.  She was receptive but my sister vetoed. I was concerned at that time that my Father's commitment was in jeopardy.  Now my sister is saying I will have to pay something for the business.  With their money being burned through at a fast rate my sister wants me to have the business assessed to determine how much I can afford to pay.  This business is SMALL!  My Wife myself and one employee are all under paid as it is.  What I could pay would do next to nothing to help with the amount of money my Parents are paying each month.  This business is a pay check for us.  That's all.  Under the verbal agreement I have with my Father I see no reason to have to go through this ordeal.  We are battling against the clock as well with the Medicaid five year look back period.  My Father who has a touch of Dementia still says I earned the business but doesn't have what it takes to help.  My Mothers name is on the deed and my sister is telling her what to do.  I told my mother I would give what I could afford(which won't be enough to help) but please don't tie it to my livelihood.  My Wife and I are trying to put together a feeble retirement as well.  Does my Father's verbal agreement with me have any weight or do I we need to get new jobs?

Thanks for your help,

J B

[Theyn]

You need to talk to an attorney ASAP.  In a nutshell, if the Power of Attorney your sister holds is as broad as I suspect, she can do anything your father can do.  If your oral agreement with your father is enforceable, she cannot breach it any more than he could.  However, it is very possible that your "agreement" is not an enforceable contract either due to your state's "Statute of Frauds"(which often require certain types of contract, including contracts that cannot be performed within a specified time, to be in writing) or because the terms of the agreement are not sufficiently complete to create a binding agreement.  On the other hand, your working for the business all these years may be considered partial performance which may tip the scale back in your favor.

In short, there are too many factors(including the law of your specific state) to give you any guidance in a general forum of this nature.  You need someone to look at your specific facts and the applicable law in your jurisdiction.

Good luck.