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gvgertie
Guest
In 1999 my parents visited an estate planner who set up their wills and an irrevocable trust. I am the trustee. My father passed away in Sept. 2000 and I am in the middle of trying to sort this all out. We all reside in the state of Idaho.
In my father's will, all of his personal property was left to my mother and all other assets to the trust. These are my questions:
1. In the trust document, the asset list is blank. My parents jointly owned several businesses which had been sold. They carried the paper in escrow and there is still monthly income from these escrows. Since these businesses were jointly owned, does the income go into the trust or to my mother? Since Idaho is a community property state, would these go to my mother, does it all go into the trust, or does my father's half go into the trust?
2. Who and how is it decided what goes into the trust? Why wasn't this done at the time the trust was set up? Does this mean there is no trust because there is nothing in it?
3. The will states that the trust is revocable but the trust document itself says irrevocable. Is this a typo or is there a reason for this?
4. What is meant by the trust failing?
5. If the assets are less than $675,000 does that mean that there is no trust? I know that there would be no tax benefit, right?
6. The trust states that the grantors cannot benefit from the trust. Is my mother left with no income?
I know this is long but I am really in a quandry! My father had brain cancer and he had expressed a concern about this shortly before he passed away but wasn't in any condition to find out more about this. He thought he had really messed up by setting up this trust. His whole reason was to take care of my mother, and my sister and I both want her to have everything she deserves. My parents worked hard and long all their lives to build a good retirement for themselves. I don't want to see my mother living on social security only. Is there anyway to make sure she gets the income from these assets?
Thanks for your help!
Kathy
In my father's will, all of his personal property was left to my mother and all other assets to the trust. These are my questions:
1. In the trust document, the asset list is blank. My parents jointly owned several businesses which had been sold. They carried the paper in escrow and there is still monthly income from these escrows. Since these businesses were jointly owned, does the income go into the trust or to my mother? Since Idaho is a community property state, would these go to my mother, does it all go into the trust, or does my father's half go into the trust?
2. Who and how is it decided what goes into the trust? Why wasn't this done at the time the trust was set up? Does this mean there is no trust because there is nothing in it?
3. The will states that the trust is revocable but the trust document itself says irrevocable. Is this a typo or is there a reason for this?
4. What is meant by the trust failing?
5. If the assets are less than $675,000 does that mean that there is no trust? I know that there would be no tax benefit, right?
6. The trust states that the grantors cannot benefit from the trust. Is my mother left with no income?
I know this is long but I am really in a quandry! My father had brain cancer and he had expressed a concern about this shortly before he passed away but wasn't in any condition to find out more about this. He thought he had really messed up by setting up this trust. His whole reason was to take care of my mother, and my sister and I both want her to have everything she deserves. My parents worked hard and long all their lives to build a good retirement for themselves. I don't want to see my mother living on social security only. Is there anyway to make sure she gets the income from these assets?
Thanks for your help!
Kathy