QUESTION
What happens if sub-trusts are not created.
Asked on Oct 09th, 2015 on Trusts and Estates - California
More details to this question:
It's a shared living trust created 25 years ago, the first spouse died, the second spouse now has to create and fund 3 sub-trusts, 2 of which are irrevocable. Problem is, it's a huge aggravation and expense, but the assets are too small for any tax advantage since tax free inheritance limits are higher now. This is a huge burden that the second spouse did not see coming. What if the second spouse does not create and fund the sub-trusts? The beneficiaries are OK with this.
1 ANSWER
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The surviving spouse usually has the power within the trust instrument to create or not to create the subtrusts when one spouse dies. Double check the trust instrument. I'm sure it's in there.
Answered on Oct 10th, 2015 at 9:37 PM