What is the name of your state (only U.S. law)? California
I'll try to keep this simple.
John and Mary are married. John has a son Paul and Mary has a daughter Sally from previous marriages. They have a trust that says that John's share of the trust goes to Paul, and Mary's share to Sally (they each get 50%). John and Mary have a house in their trust. John passes away. The next year Mary sells that house for $50,000 and buys a new house. When Mary passes the new house is worth $120,000. Is it $60,000 each to Paul and Sally? Or is it that the new purchase was by Mary and so all $120,000 goes to Sally? Or is it $25,000 to Paul (1/2 of the value when his father passed) and $95,000 to Sally ($70,000 gain plus 1/2 the original sale)?
Thanks so much!!
Donald
I'll try to keep this simple.
John and Mary are married. John has a son Paul and Mary has a daughter Sally from previous marriages. They have a trust that says that John's share of the trust goes to Paul, and Mary's share to Sally (they each get 50%). John and Mary have a house in their trust. John passes away. The next year Mary sells that house for $50,000 and buys a new house. When Mary passes the new house is worth $120,000. Is it $60,000 each to Paul and Sally? Or is it that the new purchase was by Mary and so all $120,000 goes to Sally? Or is it $25,000 to Paul (1/2 of the value when his father passed) and $95,000 to Sally ($70,000 gain plus 1/2 the original sale)?
Thanks so much!!
Donald
Last edited: