Randy Marvin Spiro's Answers

A/B trust question

In an AB trust, the portion of the first spouse to die's assets equal to the exemption goes to the B trust and all remaining assets go to the A trust. In an ABC trust, the portion of the first spouse to die's assets equal to the exemption goes to the B trust, the portion of the first spouse to die's assets in excess thereof goes to the C trust and all the surviving spouse's assets go to the A trust. In an AB trust (if properly drafted) the A trust is subject to estate tax when the surviving...

2 lawyers agreed with this answer

1 person marked this answer as helpful

Estate plan structure

The home would be deeded by quitclaim to a revocable trust to be prepared by an attorney. The plan should include two pour-over wills to cover assets not transferred into the trust during the couple's life. If the spouse is to get everything under the estate plan, the spouse should be the primary beneficiary of the IRA. Whether the children or the trust is the contingent beneficiary depends in part on whether the children are minors (trust) or adults (children themselves) The plan should...

2 lawyers agreed with this answer

1 person marked this answer as helpful

Can I revise a living trust without the use of an attorney?

Even though a person who has created a revocable trust has the right to amend it without an attorney, there are problems in attempting to do so. If the amendment you create is invalid for some technical reason, or if there are ambiguities in what you have done, the problems that could be encountered at your passing could dwarf the attorney fee for preparing the amendment. If you are amending the trust to change the trustee, you will want to have the attorney prepare a codicil to the will to...

1 person marked this answer as helpful

Real Estate sale by Irrevocable Trust (California)

When a gift is made, the recipient (in this case the irrevocable trust) takes a basis equal to the donor's old basis. If the donor is still alive and the trustee sells the home, there is no step up in basis. If the home is sold after the donor's death, the property will only get a stepped up basis by virtue of the donor's death if the property was includable in the donor's estate for estate tax purposes. Some irrevocable grantor trusts have 'defects' in them that were put there intentionally so...

What are the tax implications of giving cash gifts to family? Is there a one time tax free option?

First, the check must clear before the end of the year to be a valid gift that year. Second, the check needs to be deposited in an account in the name of the donee and the donor's name. Whether you make a cash gift or a non-cash gift, the annual free gift per donee is $13,000. The portion of the gift in excess of $13,000 per donee per year must be reported on a gift tax return, and it will be charged against the donor's $1,000,000 free lifetime giving amount. This same amount will also be...

If a parent made out a trust and later had a new trust made is the old trust automatically void in lieu of the new trust?

First an attorney must determine whether the old trust was revocable by the surviving spouse. To the extent it became irrevocable, your father in law may have violated it to the extent he took assets out of the old trust and transferred them to the new trust. Second, an attorney should determine whether your father in law actually transferred assets out of the old trust and into the new trust. If he left assets in the old trust, merely signing a new trust will not cause the assets in the old...

My mother recently died and Dad is struggling with her estate. She had two mutual funds and a safe deposit box in her name.

Some banks will allow the closest relative to access a safe deposit box even if the relative is not a signer on the box if the relative tells the bank that he or she is looking for will(s). If the estate does not qualify for the small estate procedure, and when an attorney has filed a petition with the court and gotten an order appointing your dad as representative of your mom's estate, those papers should be taken by your dad to the bank to gain access to the box.

Post Estate Plan Completion Procedures

The attorney should keep a copy. The client should be given an original and a copy. The original could be stored in a safety deposit box, but if it is, the client needs to consider whether to give one or more persons access to the box so that there will not be problems accessing it at the client's death. On the other hand, there is a risk of the person who is given access to it entering the box and stealing items. even while the client is alive. The copy should be kept in the client's home. The...

He has a will,my dad is very ill (Hospice Care).After his death what do we do next with his wishes? (distributing his estate)

Probate is a court procedure to authenticate a Will , to make sure that debts and taxes are paid and to supervise distribution of assets to the right persons. Each state has its own laws governing probate. Your dad's Will probably designates an Executor to handle the probate and it is the Executor who can hire an attorney to help the Executor in filing papers with the state court to have the Executor appointed. There will be a hearing, notice to heirs and beneficiaries, in some cases...

How long can an estate (simple trust) remain open?

The trustee does not have to file form 8855. The trustee should be more concerned with whether the beneficiaries will accuse the trustee of negligence than he should be with the question of whether the IRS will have a problem with how long the trust has been kept open. The trustee should document his efforts to sell the property. The trustee should consult with his attorney about what procedures are available under state law to minimize the trustee's liability for declines in values of the...