Legal Question in Wills and Trusts in California

AB Trust

in an AB Trust where all assets are owned jointly 50/50. when one dies, is the other trustee required to fund the trust to the exemption?

even if it would mean that the survivor would have to place more than 50% in the other trust?

say the estate was worth $1.5 million and the exemption was $1 million. Is the survivor trustee mandated to place $1 million in the exemption trust?


Asked on 3/03/09, 2:23 am

3 Answers from Attorneys

OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: AB Trust

I would need to review the trust documents and perhaps request an accounting. Contact me directly.

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Answered on 3/03/09, 2:10 pm
Scott Linden Scott H. Linden, Esq.

Re: AB Trust

It depends on the terms of the trust. Genreally, you want to put income producing or highly appreciable items in the decedent's trust, but there is no REQUIREMENT that it be funded to the max, unless the trust says it is so.

I would be happy to assist you by reading over the terms of the trust so I can give you a better and more informed response. Please feel free to email me directly, to discuss this in a more private forum, at the email provided by LawGuru or I can be contacted through our firm's site at PasadenaEstatePlanning.com.

Scott

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Answered on 3/03/09, 3:09 pm
Michele Cusack Pollak & Cusack

Re: AB Trust

No. The exemption trust can be funded with up to the exemption amount (3.5 million in 2009) but only with the share of the trust estate of the spouse who died. Assuming that the estate of the spouse who died is not more than the exemption amount, one-half of the community estate should be allocated to the survivor's trust (A Trust) and the other half, plus the separate property of the spouse who died, if any, to the exemption trust (B trust).

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Answered on 3/03/09, 4:36 am


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