Do assets in a irrevocable trust get a second step-up in basis on the death of the surviving spouse?
Generally no, unless the trust granted a general power of appoibtment to the surviving spouse (not common).See question
My sisters & I received an inheritance from my deceased mother's IRA in 2013, which was under $10,000 each. The place that this IRA was being distributed from asked if we wanted any money to be withheld in case there were to be taxes needed to be...
Distributions from IRAs are taxable income in the year received, with the exception of distributions from ROTH IRAs.
The 1099 you received in the following year after the distribution was to inform you that you received taxable income, and taxes should have been paid for the tax year in which you received the distribution.
The company making the distribution did withholding for you, and also provided with the necessary tax form. They had no obligation to advise you about your personal tax liability.
You will owe the taxes and a likely penalty for failure to pay the taxes on time.See question
My grandmother died in 2000 and left a sizeable trust. I've done nothing with it since then as I have a good job I like, live simply, and didn't feel a need. The trustee changed a few yrs ago and we don't get along and I've felt he hasn't been l...
The answer to your question at to whether or not you can replace the current trustee starts with the actual trust agreement. You will need to have an attorney review the trust agreement to see who has the authority to remove and replace the trustee, and to see whether you as the beneficiary have the authority toNo
No simple answer can be given to your question without an actual review of the trust document.See question
I'm married, have a revocable living trust but not to many asset so estate tax is not an issue. I'm just concerned about community property because NY is not a community property state.
I suggest you contact a local estate planning attorney to have your trust updated to reflect California law. The differences between New York and California in the estate area are striking, and you really should have your estate plan revised to reflect that.See question
My husband and I are seeking to work with a lawyer who deals with setting up trust for children upon the deaths of their parents. But we are not sure of the specialization field we should be looking at.
I agree with the other attorneys. An attorney who specializes in estate planning is your best option. Besides planning for guardians for minor children through a Will or separate Nomination of Guardians, additional planning for small children may be advisable.
Also, how property is passed on to children is crucial, especially when you factor in the various ways that inheritances can be lost after being received by a child.See question
Needing a Special Needs trust immediately in anticipation of an insurance settlement, can the trust be more finely tuned later.
A special needs trust such as you describe would have to be established through the local Probate Court, because if the insurance settlement is for the benefit of the injured special needs person, it is actually their own property. Such a trust is called a "first party trust" or d4a trust, and you will need an attorney who specializes in such trusts. There are very specific requirements as to who can set up such a trust for the special needs person. I suggest you a member of the Academy of Special Needs Planners who will be able to assist.See question
Once a Special Needs Trust receives a social security number are there any annual fees due the state or Federal government. This has nothing to due with trustee fees, etc., etc.
Short answers. There are no annual fees due to the state or Federal government solely because a special needs trust has been created.See question
My grandmother's living trust was drawn up by her attorney who also signed the document after her. Unfortunately, it appears he forgot to stamp it with the notary seal. Is the trust now invalid? Can it be recorded without the notary's stamp?
First of all, there is no legal requirement that someone's living trust be recorded anywhere. A living trust is a private legal document, and would only become public is someone wanted to make a change or contested it after the death of the original creator of the trust, and then it would be filed with the local Probate Court.
Second, there is no legal requirement in California for a living trust to be notarized at all to be valid. The failure to apply a notary seal by the attorney does not affect the validity of the trust at all. It would only potentially go to whether or not your grandmother actually signed the trust in the first place. It is likely that the attorney's notary journal was signed by your grandmother, which would provide proof of execution of the trust if that was challenged.See question
This in order so one daughter's creditors cannot attach her portion of the house and force a sale? Can creditors get her portion of inherited stock?
The short answer is this: You can make one daughter beneficiary of your house, while both daughters are beneficiaries of some stock. However, to get creditor protection, it will be necessary to leave property "in trust" for the daughter you wish to be protected from creditors.
You should consult with a local estate planning professional who can assist you with this type of planning.See question
Hi, My parents have a house worth about $2million in Palo Alto, Ca with a living trust. My father passed away in 2008 and we did an appraisal to get the stepped up basis, now my mother is very sick if she passes do we get a second step up...
The is likely "yes," provided that the home passed to your mother and she is now the 100% owner.
However, if your parents had what is called an "A/B" trust, then there may have been a legal requirement to divide the home between the portion owned by your mother, and the portion owned by your father. If so, the portion owned by your father would NOT get the stepped-up basis.
You will need to consult with an attorney to review the living trust and determine what, if any, trust administration was done back in 2008 in order to get a definitive answer.See question