Divorce - If I inherit a Trust - and work to increase it's worth - is it community property?

Asked 7 months ago - San Jose, CA

Married for many years - now I inherit a Trust.
If I work for trust will the amount earned by Trust (from now on) become community property?
If I do not work for the trust - and the worth goes up on it's own - will this increment become community property in case of a divorce?



Thanks so much.

Attorney answers (3)

  1. Michael John Harrington

    Contributor Level 17

    4

    Lawyers agree

    Answered . Yes to first question, no to second, and your'e welcome :-)

    The answers on this discussion board are general in nature and NOT intended as legal advice. Responding to... more
  2. David Raymond Mahood

    Pro

    Contributor Level 18

    2

    Lawyers agree

    1

    Answered . An inheritance is your sole and separate property. Any work you perform during your marriage is community property. Any separate property which produces profit without your active work will produce separate property earnings. So active earnings during marriage is community property and separate property passive income remains separate property. You could enter into a marital settlement agreement and resolve all these issues between you by making a contract. If your spouse is agreeable, make sure the spouse has an attorney when you both enter into the agreement so that you cannot be successfully accused of overreaching, duress or coercion, etc.

    This is NOT legal advice, is GENERAL INFORMATION ONLY, and does NOT establish an Attorney/Client Relationship with... more
  3. John Noah Kitta

    Pro

    Contributor Level 19

    2

    Lawyers agree

    Answered . The issues you raise are of a very complex nature. It depends if this was a few hour a week part-time job or full-time job in terms of managing the assets. If this is your full-time occupation managing the Trust, then she is going to have some interest in the appreciation and valuation of the Trust. If you simply retain an attorney and CPA and a manager and they do all the work, then she really is not going to participate. If you are not working for the Trust, then she has no interest in increased valuation during the term of the marriage.

    I hope this is helpful.

    John N. Kitta
    Fremont

    If you have found this information helpful, please let the attorney know by marking best answer. Thank you.... more

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