"tfpr...[at]yahoo.com" <tfpr...[at]yahoo.com> wrote:
- quote -

Generally speaking, Trust A would not become commmunity
property unless there were an overt act to make it CP.
However, ANY income, in most CP states, become CP
immediately, so depositing it in the same account with Trust
A would "polute" Trust A and it might become CP. In a non-CP
State it would alweays remain separate property.

Even though in Trust, Trust A property is the widow's
personal cash and she can do whatever with it and will it to
anyone. It's only protection is the mantle of a revocable
trust and being brought into a second marraige as seperate
property.

ed

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Avrum Lapin <avrum...[at]verizon.net> wrote:
- quote -

would the "pollution" occur even if the deposits are 100%
hers (ie social security?) would it be best to set up a new
bank account and avoid depositing money in the A trust?

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Avrum Lapin <avrum...[at]verizon.net> wrote:
- quote -

In regards to the "pollution" - would this apply to monies
that are 100% hers i.e. a social security deposit into the
trust each month, etc? Would it be wise for them to keep
separate bank accounts to avoid this?

-tim

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tfprusd[at]yahoo.com wrote:

- quote -

Much of the answer depends on the wording of the trust.

Trusts have two main purposes, I believe, one, to take
advantage of the Estate Tax exclusion, so that the exclusion
is preserved on the first death of a couple, and not lost by
leaving all to spouse directly. Two, to keep money in the
bloodline, not having the new spouse inherit, all leave the
old kids out in the cold. (yes, there are more reasons, keep
irresponsible kids from windfalls, etc, but I think the
first two are larger issues).

The irrevocable trust may (should?) be worded so it offers
minimum distributions to your mom. She shouldn't fall on
hard times for the sake of leaving you an inheritance. Nor
should she deplete it purposefully just to keep the money
from you. Again, you need to ask to read the trust documents
very carefully.

The revocable portion may already be worded in a way that
protects your interest, but as 'revocable', your mother can,
well, revoke it, and add the new husband. That would need to
be a new visit to the lawyer, unless the trust is already
worded to address the addition of the new husband.

This is the long version of "read the trust docs". It should
help you understand what to look for. You have a right to
ask the trustee for an accounting each year to protect
yourself.

JOE

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"tfpr...[at]yahoo.com" <tfpr...[at]yahoo.com> wrote:

- quote -

If she does nothing he shouldn't be able to get any of it.
Generally these trusts are written to protect children from
a remarriage but there's no telling what a lawyer could do
to it. She can't add anyone as a beneficiary because the
trust is irrevocable. Usually she can will any amount of
Trust A to anyone, but she can't will any of Trust B to
anyone other than to (usually her deceased husband's
children). Hopefully (for any children) she doesn't know she
can still control the trust A assets.

ed

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"tfprusd[at]yahoo.com" <tfprusd[at]yahoo.com> wrote:

- quote -

If the wording of the trust follows the normal format the
new husband can't touch the money in the B trust (and isn't
entitled to any of it). If your mother can draw money from
the B trust and she hands it to the new husband then he
would obviously have it.

The A trust is trickier. If your mother adds money to the
trust after her marriage the trust might become "polluted"
and could be treated as community property.

This is a situation that cries out for a pre-nup especially
if the new husband has fewer assets than your mother has.

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Father died last year - mother now is the sole trustee of
both the A trust in her name (revocable) and the B trust in
my father's name (irrevocable). If she re-marries, will the
new husband be entitled to any of the trust monies just by
the fact that they are married? He would need to be added
as a beneficiary to receive any trust property, correct?

thanks

-tim

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