You cannot be the surviving spouse of a trust. A trust is a legal arrangement set up to hold title to property. Any trust is managed by the provisions set forth in the document that created the trust. You need to review that document. If no one has a copy then you may need to get a court order to make changes.
Generally, no. In fact, a properly drafted trust protects the assets of the trustor from their spouse. That type of arrangement is often used when a person has valuable assets, children from a first marriage and a new spouse. A trust removes the assets from their individual estate thereby circumventing inheritance laws.
A residual trust is known as the A-B trust. It its set up to handle someones estate and allow for part of it to be used for the spouse.
You must review the terms of the trust to determine the powers of the trustee. If you still have questions then you need to consult an attorney who specializes in trust law.On one point you seem to be confused. A decedent cannot be the owner of 99% of the property in a trust. The property is owned by the trust. The most common purpose of a trust is to remove property out of a person's estate (the grantor) so that the property bypasses probate.Once a person transfers her property to a trust, it is managed by a trustee according to the terms of the trust. A properly drafted trust has provisions that direct the distribution of property after the death of the grantor.
Yes, the policy OWNER has the right to make changes on the policy, including changes of beneficiaries, or % of split between different beneficiaries. Keyman life policies are usually owned by the key person's employer. The employer in this case can decide what % of the benefit the business will receive and if they want to split the benefit for other purposes (key person's spouse, trust, charity, etc).
a trust
It's not typically possible for a surviving spouse to break an irrevocable trust unless there are legal grounds, such as fraud or undue influence. The terms of the trust usually determine how the assets are distributed, regardless of the surviving spouse's desires. The surviving spouse may have rights to certain benefits, but these would not usually include breaking the trust.
A QTIP trust (a.k.a. C trust), which is typically created at the death of the first spouse to die, grants the surviving spouse a lifetime right to the income of the trust (at least annually) while transfering the remainder interest to individual(s) of the grantor's choosing. This qualifies for the unlimited marital deduction even though the spouse does not receive outright access to the assets in the trust. Even though this IS a terminable interest (usually disqualifying the marital deduction), the QTIP will qualify for the unlimted marital deduction since the surviving spouse will be required to include, in his/her gross estate, the fair market value, at the surviving spouse's date of death, the assets of the trust. The assets are taxed later in the surviving spouse's gross estate, but they will pass to the beneficiary of the trust, chosen by the first-to-die-spouse, at the surviving spouse's death.
The percentage of the trust that belongs to the surviving spouse when the spouse passes away and has children can vary depending on the terms of the trust. In some cases, the surviving spouse may be entitled to a portion of the trust assets, while the remaining assets may pass to the children. It is important to review the trust documents and consult with an estate planning attorney to determine the specific distribution.
Married couples are able to increase the use of his/her federal exemptions from the estate tax by the use of an AB Trust as a part of their estate plan. This system organized under the couples’ Revocable Living Trusts or Last Will and Testaments. The “A Trust” is usually referred to as the Marital Deduction, QTIP, or Marital Trusts. The “B Trust” is usually referred to as the “Family Trust”, “Credit Shelter Trust”, or “Bypass Trust”. Ways the AB Trust Maximizes Both Spouses Tax Exemptions: 1.The couple has the correct AB Trust Language included in their Revocable Living Trust or the Last Will and testament. •Should be done with a qualified estate-planning attorney. 2.The couples assets are divide so each spouse has just about the same value of assets in their Revocable Living Trust or in their individual name. •This is an essential step and need to be done so that the AB Trust system can work. Often, couples leave his/her assets in joint account, which completely cancels the use of the AB Trust system because the joint assets will pass to the surviving spouse outright, instead of by way of the deceased spouse’s Living Trust (Revocable), or Last Will. 3.The first $ 3,500,000 of the surviving spouse’s assets will be funded into the B Trust, if the first spouse died in 2009. •This successfully utilizes the first spouses $ 3,500,000 federal exemption that comes from taxes that were available for deaths happening in 2009. The B Trust can be used for the benefit the descendants, the surviving spouse or other beneficiaries and can be reasonably flexible. 4.The excess is funded into the A trust if the spouse who is deceased assets exceed $ 3, 500,000. •This will postpone the payment of estate taxes on amounts of the deceased spouse exemption of $ 3, 500,000, pending the surviving spouse’s death. The A Trust is less flexible, because of this estate tax deferment and can only be utilized for the advantage of the surviving spouse. The surviving spouse is also required to accept all of the incomes from the A trust. 5.Later, as a result of the surviving spouse dying, the surviving spouse will keep their own estate tax exemption, if a federal estate tax is in effect. •If the exemption sum is $ 3,500,000 at the time the surviving spouse dies, then the first $3,500,000 that comes from the surviving spouse’s detached assets will go to the final beneficiaries, tax-free. Anything above $ 3,500,000 will experience tax.
Typically, a surviving spouse cannot unilaterally dissolve a revocable living trust for the purpose of disinheriting a beneficiary if the trust was set up by both spouses. However, they may be able to amend the trust if it allows for changes to beneficiaries. It is important to consult with an attorney for specific legal advice in this situation.
No. Assets that were transferred to a valid trust are not included in the estate of the decedent.
They can file a petition in the probate court requesting a copy of the will.
If she was on the family Trust but the property was not recorded with the county of records, and title is only on his name when he died then she may have to go to probate court.
Generally, no. However, she may be entitled to an inheritance, and if she is a minor, her surviving spouse may hold that inheritance in trust for her.
In many jurisdictions, a wife may be entitled to a share of her husband's estate upon his death, even if not explicitly mentioned in the will. This is typically referred to as a spousal share or statutory share, which varies depending on the laws of the specific jurisdiction. It is meant to ensure that the surviving spouse is provided for, regardless of what the will may dictate.
No, it is not possible for a spouse to revoke a revocable living trust without the other spouse knowing in California. Both spouses typically have rights and responsibilities in managing community property, including property held in a revocable living trust. Any changes made to the trust would likely require the knowledge and consent of both spouses.
You need to review the provisions of the trust to determine where the proceeds will go if a beneficiary is deceased. The provisions of the trust would govern.