What is the name of your state (only U.S. law)? California
My wife and I are getting a divorce. We have been living separately since last October. Neither of us has filed for divorce yet. We have the ‘negotiating’ since last June. I’m fed up with ‘negotiations’ that go nowhere so I will be filing by the end of June.
We have two children 18 and 21.
I need to have surgery in the next two weeks so I want to make sure I have a will before then.
I have an insurance policy that pays to my wife. That is obviously hers.
I have another insurance policy that pays to my two children. However I do not want them to get a large hunk of cash at this time in their lives. Instead I want to put it in a trust and have my sister as trustee. The funds can be used to pay for tuition, school expenses, medical, etc… all the usual things. Then when the youngest is 30, the remainder will be paid out to both of my kids equally.
I’ve been looking at both testamentary trusts and living trusts.
I have researched using a Testamentary Trust that is in my will and created after my death. My understanding is that in this case, since the trust is not created until after my death I would have to make the beneficiary of the insurance my estate. The insurance funds will then go through probate.
Doesn’t this mean that since California is a community property state, my wife would get half of the kids insurance payout before the trust is funded?
Is this the case even if my will says that I leave nothing to my wife? I think that what the will is saying is that I give her nothing of my half of our marital community assets… right?
The other idea I had is to set up a living trust and to put just a bit in it, this way in the divorce it does not become an issue. I’m not trying to hide or shelter community assets from my wife. Only trying to protect my children’s insurance payout in a trust.
So with a living trust I understand a name the living trust as the beneficiary of the insurance that I have for my kids. So these funds only go to the living trust IF I pass away.
But here’s the question I have about using a living trust. The living trust does not go through probate. Is there any way my wife can make a claim on the living trust? Does a living trust become part of marital community property if I die?
My wife and I are getting a divorce. We have been living separately since last October. Neither of us has filed for divorce yet. We have the ‘negotiating’ since last June. I’m fed up with ‘negotiations’ that go nowhere so I will be filing by the end of June.
We have two children 18 and 21.
I need to have surgery in the next two weeks so I want to make sure I have a will before then.
I have an insurance policy that pays to my wife. That is obviously hers.
I have another insurance policy that pays to my two children. However I do not want them to get a large hunk of cash at this time in their lives. Instead I want to put it in a trust and have my sister as trustee. The funds can be used to pay for tuition, school expenses, medical, etc… all the usual things. Then when the youngest is 30, the remainder will be paid out to both of my kids equally.
I’ve been looking at both testamentary trusts and living trusts.
I have researched using a Testamentary Trust that is in my will and created after my death. My understanding is that in this case, since the trust is not created until after my death I would have to make the beneficiary of the insurance my estate. The insurance funds will then go through probate.
Doesn’t this mean that since California is a community property state, my wife would get half of the kids insurance payout before the trust is funded?
Is this the case even if my will says that I leave nothing to my wife? I think that what the will is saying is that I give her nothing of my half of our marital community assets… right?
The other idea I had is to set up a living trust and to put just a bit in it, this way in the divorce it does not become an issue. I’m not trying to hide or shelter community assets from my wife. Only trying to protect my children’s insurance payout in a trust.
So with a living trust I understand a name the living trust as the beneficiary of the insurance that I have for my kids. So these funds only go to the living trust IF I pass away.
But here’s the question I have about using a living trust. The living trust does not go through probate. Is there any way my wife can make a claim on the living trust? Does a living trust become part of marital community property if I die?