rshimizu12[at]yahoo.com wrote:

- quote -

In the last part of the first paragrah I think you meant
*by* the son who inherits the house, not *to* him. There
are always ( or should be) provisions in a trust to divide
in cash or kind. Since the house was originally not willed
to anyone specifically, but was presumed to be divided
equally with all other assets, mother (the executor) can do
whatever she wants in dividing assets equitable, and/or is
agreeable to all the heirs. The trust cannot, and need
not, be changed. Mother, however, can do whatever she wants
with her 1/2 of the total estate, since she owned that 1/2
or everything, and still does. She can pay the trust $150K
for the husband's 1/2 and take the house entirely for
herself, and give it to the son. The key is *equitable
division*.

ed

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<rshimizu12[at]yahoo.com> wrote:

- quote -

I don't understand.

Originally, it was all supposed to be split evenly?

Now, the mother wants the house to go to the son, and the
rest to be split evenly? Or the house goes to the son, the
daughter gets the house's cost (or value) out of the rest,
and the remainder is split evenly?

Seth

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rshimizu12[at]yahoo.com wrote:

- quote -

The terms of the trust were;
"All assets to be split betweeen the two kids". Right?

Now, it seems the mother would prefer to leave the house to
the son, but split the remaining assets between the kids?

It sounds like the daughter is about to get the short end of
the stick.

The answer is, "it depends." I assume the mother lives in
the house until she dies, then the trust distributes the
asets. Does she retain any rights beyond that? If the trust
allows her to spend down assets as she wishes, and borrow
against the house, she may be able to deplete the trust of
its assets. But, a properly worded trust would allow no
borrowing against the home and limited withdrawal rights
against any such principle. The trust documents need to be
reviewed very carefully. Sounds like dad was fair but mom is
pro-son.

JOE

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rshimizu12[at]yahoo.com wrote:

- quote -

This is not a tax-related question, you need to talk to your
attorney or post on misc.legal.moderated

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rshimizu12[at]yahoo.com wrote:

- quote -

Normally when a trust is set up it can be amended or revoked
by (but only by) the people who set it up. When those
people die the trust is irrevocable because there's no one
else around who has the power to change it.

When a couple create a trust and one dies, that spouse's
portion goes into a separate trust, and that part of the
trust becomes revocable because it was his property and
nobody else has the power to amend or revoke the plan he set
up for his property after he dies.

There are other ways that trusts are drafted, but I'd have
to read yours before I could tell you if it varies from the
general rule.

- quote -

If the father's portion of the trust was set up so that
mother had a testementary special power of appointment, she
can do with it what she wants. If not, she can't.

Stu

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<rshimizu12[at]yahoo.com> wrote:

- quote -

There's no way anyone here knows. Only a lawyer who knows
what the trust's provisions are can tell you. If you want a
second opinion, take it to another lawyer.

--
Phil Marti
Clarksburg, MD

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rshimizu12[at]yahoo.com posted:

- quote -

The standard advice related to "Living Trusts" (revocable
living trusts) is that they become _irrevocable_ upon the
death of the individual in whose name they have been created
-- i.e., the John Smith Trust becomes irrevocable upon the
death of John, even though his wife Mary survives as one of
the trustees.

I'll be interested in seeing if there are any "Philadelphia
Lawyer" ways around this that get posted.

Bill

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The couple was married and the father passed away.There
originally was a trust, but the mother decided to leave the
house to the son and the remaining investments would be
split between the son and daughter.. The house was worth
originally 300,000 so $150,000 would have to paid to the son
who is to inherit the house

The attorney has informed them that the trust cannot be
changed..?? Is this true..Is there a alternate plan that can
be set up so that the son inherits the house free of
obligation to the daughter..Or is there a alternate way to
change the trust so the distribution of the assets can be
changed to compensate for the $150.000. Alternatively is
there way to change trust to protect the son if there is not
enough money to cover the remaining assets..??

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