What is the name of your state? CA
We had a grandmother who just passed away, she lived in AZ we live in CA. She gave each of her grandchildren a lump sum, and the majority of the trust is left to her daughter in a 5 by 5 trust. She gets 5% a year of whatever the estate worth is aprx $800,000 at the moment. It is such a dissappointing setup to those of us who could have used some help from our mother had she received the amount in a lump. The way it is set up our mother gets whatever the 5% of the estate is yearly and if she takes more, she has to pay it back at 5%. Who is she paying the money back and the interest too? Isn't it her money? Also, when she eventually passes does she have the ability to direct changes in that existing trust to be how she wants them after her death, or does the grandmothers trust stand forever? In which case what would her grandchildren do split the 5% a year?? We are all very confused.
Thank you!
We had a grandmother who just passed away, she lived in AZ we live in CA. She gave each of her grandchildren a lump sum, and the majority of the trust is left to her daughter in a 5 by 5 trust. She gets 5% a year of whatever the estate worth is aprx $800,000 at the moment. It is such a dissappointing setup to those of us who could have used some help from our mother had she received the amount in a lump. The way it is set up our mother gets whatever the 5% of the estate is yearly and if she takes more, she has to pay it back at 5%. Who is she paying the money back and the interest too? Isn't it her money? Also, when she eventually passes does she have the ability to direct changes in that existing trust to be how she wants them after her death, or does the grandmothers trust stand forever? In which case what would her grandchildren do split the 5% a year?? We are all very confused.
Thank you!