QUESTION
Is this a breach of trust administration?
Asked on Mar 08th, 2013 on Trusts and Estates - California
More details to this question:
A couple had an A/B Trust, one party passed; per terms of their trust 50% was supposed to be funded (i.e., a B trust established), but not performed. Can a new revocable living trust be created instead? This is what has taken place.
1 ANSWER
It depends. Was it a mandatory A/B trust or a disclaimer A/B trust? A lot of A/B trusts are disclaimer trusts which means the surviving spouse can choose to elect the B trust funding. If so, then they can amend the entire trust. Having said that there are situations where the surviving spouse can only amend 1/2 of the trust. The key would be talking to an experienced trust and estate attorney. Good luck. -John
Answered on Mar 12th, 2013 at 9:49 AM