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Subject Author Date
Changing a family trust rshimizu12 06-06-2006
Posted by rshimizu12 on June 6, 2006, 7:49 am
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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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<< and does NOT constitute legal OR professional advice. >>
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Posted by Bill on June 8, 2006, 2:03 pm
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 rshimizu12@yahoo.com posted:

> 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..??

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

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Phil Marti on June 8, 2006, 2:03 pm
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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..

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

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Stuart A. Bronstein on June 8, 2006, 2:03 pm
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rshimizu12@yahoo.com wrote:

> 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..

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.

> Is there a alternate plan that can
> be set up so that the son inherits the house free of
> obligation to the daughter..

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

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Herb Smith on June 8, 2006, 2:03 pm
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rshimizu12@yahoo.com wrote:

> 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..??

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

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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