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How are funds from a second property purchase divided?

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Donald_S

Junior Member
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
 
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LdiJ

Senior Member
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
It all depends on whether the second house was designated as part of the trust...and other factors not in evidence here. You really need to run the whole thing by a local probate attorney who can review the fine details of the situation.
 

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