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Please Help Explain Reason For Two Revocable trust???

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Mec4040

Member
What is the name of your state? NY

Hello,

My friends family seems to have a major problem, I think. They asked me to see what I could find out. This problem came to light when they were getting ready to do their taxes.

The problem is they have two 'Irrevocable trusts'. One is in the name of the father, example 'frank smith Irrevocable trust' and the other is in the name of the family, example 'the smith irrevocable trust'.

The first one was created a long time ago, as the father is to old to remember, for what reason. The second, was created about 4 years ago, to protect their house.

Is this just a big mistake, meaning were two trusts created in mistake or is there a reason/benefit why you would have two trusts? Are you less protected by having the trust in your personal name? As in the one created in the fathers name.


Thanks for the help,

MK
 


tranquility

Senior Member
There are many reasons why this might be a good idea. However, no one can tell you without knowledge of the trust's terms and the financial and personal situation of the grantor. Have your friends see an attorney for advice. Make sure they file returns and pay taxes on the income from the trusts.
 

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