Irrevocable House Trust vs. Will

[NeonMoon]

Also, let's say something was done w/o me knowing about it (which would not be legal) since I would have to agree to it... Correct??? Wouldn't I have been informed that I am no longer the Trustee?

 

[Taxing Matters]

I read thru the document and it says..."The Grantor may discharge a Trustee, Co-Trustee, etc. for cause or without cause, absolutely in their sole discretion....... I guess this means that my mom can remove me as Trustee of the Trust. Would it even hold up at this point since it is an Irrevocable Trust?

An irrevocable trust is one in which your mother can't undo the whole trust and take back all the trust assets for herself. Irrevocable doesn't mean unchangeable. So changes like replacing the trustee may be done if the trust document has a provision allowing for that. Making a change in the trustee does not undo the trust, it simply changes who manages the trust. So long as she is not mentally incompetent she retains that power and may exercise it any time. In order for that to go smoothly she would need to promptly inform you that you've been removed as trustee and either she or the new trustee would need to promptly inform anyone the trust deals with (like financial institutions) of the change in trustee too.

 

[Zigner]

Also, let's say something was done w/o me knowing about it (which would not be legal) since I would have to agree to it... Correct??? Wouldn't I have been informed that I am no longer the Trustee?

You don't have to agree to it or even need to be informed. It would, of course, be wise to inform you so that you no longer try to take any actions based on your belief that you are the trustee.

 

[NeonMoon]

An irrevocable trust is one in which your mother can't undo the whole trust and take back all the trust assets for herself. Irrevocable doesn't mean unchangeable. So changes like replacing the trustee may be done if the trust document has a provision allowing for that. Making a change in the trustee does not undo the trust, it simply changes who manages the trust. So long as she is not mentally incompetent she retains that power and may exercise it any time. In order for that to go smoothly she would need to promptly inform you that you've been removed as trustee and either she or the new trustee would need to promptly inform anyone the trust deals with (like financial institutions) of the change in trustee too.

As far as I know, it's unchanged. Since I am the trustee and manage the "house" trust, I am still get the tax bill that I pay/manage. I am still registered in NYC and being the trustee if that makes sense. I my brother had been named, he would be getting the bills to pay and that is not the case.

 

[NeonMoon]

UPDATE: I have a copy of my mother's updated will and I have the original Trust document in my possession ( since I am the Trustee). I have an attorney and he will review it tomorrow (both documents).

 

[quincy]

UPDATE: I have a copy of my mother's updated will and I have the original Trust document in my possession ( since I am the Trustee). I have an attorney and he will review it tomorrow (both documents).

Updates are always appreciated on this forum, so thank you for returning. It is good that you have an attorney working with you now.