Trust with gifted property

[randymir]

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

I'm married with kids and it's a his, hers and ours family. I have 3 children, my wife has two and we have two together for a total of 7 kids.

About 3 years ago my wife's grandmother gave us a house in the Sacramento area. At the time we were living in a home we were purchasing in Vallejo, CA.

My wife convinced me to move to Roseville into the home her grandmother gave us. However, before moving in we took money from our second on the house in Vallejo and started to remodel the home in Roseville.

The house is currently valued at around $200k and we have put at least $80k into the house in the way of home improvements and a pool.

We decided to get a trust and my wife sprang it on me that the house would go to her 4 kids and that if I wanted to do anything with the house after she passed then I would have to get the ok from one of her kids. I told her I refuse to sign anything where I had to get permissions from anyones kids. She then told me this was her house and I didn't have a choice in the matter and she had already signed the documents.

I haven't seen the documents, so I can't tell you for certain what type of trust it is.

I understand the rules around a gift such as the house and that it remains her property. However, at what point does it become community property? I have put a lot of money into this house and as we continue living in it I will continue to pour more money into it only to see it benefit her kids and not all of mine.

I told her I would be willing to have the house go to her 4 kids, but that would play into the total estate and how the remaining funds are divided. So if the house increases in value they would get less from our other funds, or vice a versa.

I have no idea at this point what my rights are, or how I should approach this.

Any suggestions or help would be greatly appreciated.

Randy

 

[curb1]

I think you are on firm ground with your reasoning. The problem, as you say, is that your wife's name is on the title. She apparently feels that what is hers is hers and what is yours is also hers. That doesn't play well, even in Rosewell.

 

[OHRoadwarrior]

Tell her to draw up a brief layout of how she feels all assets should be willed.

 

[tranquility]

This would be a technical and difficult area of the law. Are you really going to court to sue your wife? Is she really going to attempt to fund the trust with the house over your objections?

I'd say marriage counselor/family friend would be better than the court.

 

[randymir]

Tell her to draw up a brief layout of how she feels all assets should be willed.

I did and she basically is taking any of her retirement funds, which have all been funded while we've been together and having hers and our two kids as the beneficiary. And my retirement (same thing, funded while we've been together) going to mine and our kids.

 

[curb1]

That does not seem to be as big of a problem as the co-mingling of assets in the house. Assets that are co-mingled need to have special attention. You need to work this out logically or you will soon be working this out in divorce court (then everybody loses).

 

[OHRoadwarrior]

The retirement accounts seem reasonable. Now you just need to work on the other assets. Good Luck.