Inheritance tax

My mother has a Living Irrevocable Trust. I am the Trustee. Will my handicapped sister who is the beneficiary of this trust, have to pay an inheritance or estate tax upon my mother's death. The trust and estate is in Ventura County, California.

Sincerely yours,

Kathy

More important question. Is your sister getting Medicaid or Welfare? If so, she needs to have a special needs trust or the government will glom on to all the money she is left!

The size of your mother's total estate (and prior large gifts) is what determines its Federal Estate Taxability. California has no extra State estate tax.

It sounds as if you should have the lawyer who did the living trust answer this one. If you mother was foolish enough to use a fill in the blanks form or a software program, that mistake could cost your sister her full inheritance.

Dear Henry,
Thank you for your reply. My sister is on SSI (Social Security supplemental income)
What does the special needs trust do that the living trust does not? At this moment I do not know who the attorney was of my mother's trust. My oldest brother has a copy of the trust and you can call him irrisposible. Thank you so much for your attention and time.
Sincerely,

Kathy