shirasuwanum
Junior Member
For U.S. tax purposes, how does one fund an exemption trust set up as part of a living trust?
My parents set up a living trust. My father died in late 2006, and I recently discovered that my mother (still living) hasn't funded the exemption trust. Since, under the terms of the living trust, there's a requirement to fund the exemption trust, I assume that that can be done even now, over 20 months later. But I'm not sure what sort of documentation is required. My guess is as follows:
1) A statement of what property is being transferred to the exemption trust.
2) An official appraisal of the property being transferred, as of the date of death of the decedent..
3) And if the total value of the entire property exceeds the IRS exemption amount for 2006 ($2 million), I assume that the document should state what portion of the property is being transferred. (For example, if the transfer is the parents' home, worth more than $2 million, I'm guessing the document should state something like, "82.3% of property xyz (value = $1,998,324, based on the full appraised value of $2,428,097).")
Is there some sort of form or boilerplate document that's typically used?
Am I correct in assuming that the funding can be performed 20 months after my father's death, even though the living trust stipulates "within six months?" And does this have to be done before my mother dies?
Thanks,
Shira
My parents set up a living trust. My father died in late 2006, and I recently discovered that my mother (still living) hasn't funded the exemption trust. Since, under the terms of the living trust, there's a requirement to fund the exemption trust, I assume that that can be done even now, over 20 months later. But I'm not sure what sort of documentation is required. My guess is as follows:
1) A statement of what property is being transferred to the exemption trust.
2) An official appraisal of the property being transferred, as of the date of death of the decedent..
3) And if the total value of the entire property exceeds the IRS exemption amount for 2006 ($2 million), I assume that the document should state what portion of the property is being transferred. (For example, if the transfer is the parents' home, worth more than $2 million, I'm guessing the document should state something like, "82.3% of property xyz (value = $1,998,324, based on the full appraised value of $2,428,097).")
Is there some sort of form or boilerplate document that's typically used?
Am I correct in assuming that the funding can be performed 20 months after my father's death, even though the living trust stipulates "within six months?" And does this have to be done before my mother dies?
Thanks,
Shira
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