questions on living trust

What is the name of your state (only U.S. law)? Colorado

Hello. I recently found out that my parents started a Living Trust for my sister and I. I found this out becuase my mother told me she bought my sister a house using this Trust. I was not informed until they had already closed on the house.

I am not very knowledgeable with these kind of things, but I dont understand why I wasnt informed of this action (purchasing the house) because it is a joint account between my sister and I. My parets refuse to give me any of the money from the Trust. Am I entitled to any of this money, or is it at my parents discrestion?

griz1984 said:

I am not very knowledgeable with these kind of things, but I dont understand why I wasnt informed of this action (purchasing the house) because it is a joint account between my sister and I. My parets refuse to give me any of the money from the Trust. Am I entitled to any of this money, or is it at my parents discrestion?

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The trust is not a joint account belonging to you or your sister at all. The trust belongs to your parents. You are the beneficiary. When they die then the trust gets passed (based on the terms of the trust) to the beneficiaries. If the house is owned by the trust, the same is true.

griz1984 said:

What is the name of your state (only U.S. law)? Colorado

Hello. I recently found out that my parents started a Living Trust for my sister and I. I found this out becuase my mother told me she bought my sister a house using this Trust. I was not informed until they had already closed on the house.

I am not very knowledgeable with these kind of things, but I dont understand why I wasnt informed of this action (purchasing the house) because it is a joint account between my sister and I. My parets refuse to give me any of the money from the Trust. Am I entitled to any of this money, or is it at my parents discrestion?

Click to expand...

There is a loft of confusion here. A living trust is not an "account." You can do a search for living trust to get the details. However, it is, in essence, a means to pass assets on to the desired beneficiaries when the creator of the trust passes away without the need to go through the probate process.

The person or persons creating the trust usually remain the trustees while they are alive and the trust is revocable, which means that it can be modified and the trustees can use the assets in the trust in the same manner as if the assets were not in the trust. That means that, if your parents wanted to use the assets in the trust to purchase a house for your sister, they can.

If it is a living trust, then you and your sister may be the eventual beneficiaries of the assets placed in the trust. You do not have any claim to or control of the assets while your parents are alive.

If it is not a living trust, then the situation is different. You need to confirm that.

anteater - that was an excellent explanation of a living trust. I'm also a co-trustee of a living trust, and have been confused about this also. Thanks.

Sorry to barge into the thread.