Re: Family Trust and new husband

Aug 03, 2007 0 Replies


> " snipped-for-privacy@yahoo.com" wrote:


>>> Father died last year - mother now is the sole trustee of
>>> both the A trust in her name (revocable) and the B trust in
>>> my father's name (irrevocable). If she re-marries, will the
>>> new husband be entitled to any of the trust monies just by
>>> the fact that they are married? He would need to be added
>>> as a beneficiary to receive any trust property, correct?
>> If the wording of the trust follows the normal format the
>> new husband can't touch the money in the B trust (and isn't
>> entitled to any of it). If your mother can draw money from
>> the B trust and she hands it to the new husband then he
>> would obviously have it.
>>
>> The A trust is trickier. If your mother adds money to the
>> trust after her marriage the trust might become "polluted"
>> and could be treated as community property.
>>
>> This is a situation that cries out for a pre-nup especially
>> if the new husband has fewer assets than your mother has.
> would the "pollution" occur even if the deposits are 100%
> hers (ie social security?) would it be best to set up a new
> bank account and avoid depositing money in the A trust?

Generally speaking, Trust A would not become commmunity property unless there were an overt act to make it CP. However, ANY income, in most CP states, become CP immediately, so depositing it in the same account with Trust A would "polute" Trust A and it might become CP. In a non-CP State it would alweays remain separate property. Even though in Trust, Trust A property is the widow's personal cash and she can do whatever with it and will it to anyone. It's only protection is the mantle of a revocable trust and being brought into a second marraige as seperate property. ed



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