Re: Family Trust and new husband

Posted by tfprusd@yahoo.com on July 18, 2007, 5:11 am

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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?

> 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.

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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