Trusts not funded at death

[FBN2007]

What is the name of your state? MD

My father asked me to assist with his estate after my mother passed 2 years ago. Most assets other than father's IRA were held in a revocable living trust. When mother died none of the assets were transferred and re-titled into the Family Trust or Marital Trust as specified in the RLT. The attorney who did my parents estate plan was aware of my mother's passing since he amended the trust only a few weeks before her passing yet he never told us about transferring assets when she died. Can the assets still be transferred at this point? Is there any rule against this. I would think that an estate tax return should be filed even though there is no estate tax due but just to establish basis for the assets that belong in the correct trusts so there is no arguement with IRS when my father dies. If we don't make the transfers there will be tax due at his passing since estate is over 2 million.

 

[seniorjudge]

Without reading the trust agreements, no one could answer your questions here.

I am assuming, however, that this was a testamentary trust. Thus, the question arises as to why it was not funded?

 

[tranquility]

You will need to see an attorney as you have a complex situation and you need someone knowledgable in your state's laws to have access to all the facts to help guide you. The general answer is no, you cannot fund after death. However, problems like this crop up and my state, CA, (Your state may be different.) has a case which lead to what is called a Hegstad petition where you ask the court to fund the trust according to the testator(s) clearly expressed wishes. Even then it is not a slam dunk as courts here are allowing such funding less and less.

 

[Dandy Don]

The TRUSTEE is responsible for retitling the assets into the trust, so who was the TRUSTEE?

IF there is a will, probate is now going to cover the assets that were not titled.

DANDY DON IN OKLAHOMA ([email protected])