i set up an irrevocable trust for a friend of mine. i did so to stop my family trying to claim it after i die. i am waiting for some money to come to me which i then want to put into the irrevocable trust. i am very sick, if the money arrives after i die can it still go into the irrevocable trust which i set up while i was alive?
Illness is difficult, under the best of circumstances; I am sorry to hear you are dealing with this, too.
The irrevocability of the trust simply means that it is irrevocable from the date of it's creation, even while you are alive (I am not going to go into the exceptions to this general rule). The terms of the trust instrument determine how it is funded, both now and in the future. Assuming that it can be funded into the future, you can, and should have already, create(d) what is called a pour-over will, so that any assets you own that you want placed in the trust upon your death, outside of what you have put into that trust during your lifetime (which you no longer own; the trust owns those assets), pour over into the trust upon your death.
I would hope that a lawyer drafted the trust for you, and drafted the appropriate language in a will for you at the same time, and both are now in place so that you do not have to worry any further about it. If not, then you should seek further counsel immediately and have your will drafted, or reviewed and revised, as necessary, to insure that your wishes are fulfilled upon death.
Also, depending on where the money you speak of is coming from, perhaps it is possible for you to request that when the check is issued, whenever that is, that it be issued not to you, but in the name of the trust, and mailed to the trustee, so that it goes directly into the trust and the trust's funding won't depend on further action on your part. That may give you peace of mind. If that is not possible for some reason, and it may not be, depending on the source, any tax implications, and so forth (and you may need further advice about that, as well) then, and in any event, you should still make sure you have a proper will in place, since it sounds like you have great concern about making sure that the trust is properly funded.
Please note, and as stated above, this does not take into account any tax implications of your lifetime gift funding of the irrevocable trust, if you effectuate that transfer, and you don't mention whether you sought any tax planning advice, or the amount of the transfer.
I wish you the best in all regards, and hopefully your illness will improve and you will live a long time yet. All the best to you.
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I hope it was an attorney and not you personally who set up this trust. If it was you I would suggest you have an estates attorney review it. As to your specific question, your will can have what is called a pourover provision to the irrevocable trust that would allow you to accomplish your goal. Once again you need a trained estates attorney to effecuate and implement the correct language. Do not try this on your own.
Hope this helps.
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Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery Counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is [email protected] , his website for more tax, estate and business articles is www.sjfpc.com. and his blog is
LEGAL DISCLAIMER Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery Counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is [email protected] , his website is www.sjfpc.com. and his blog is <http://frommtaxes.wordpress.com/> Mr. Fromm is ethically required to state that the response herein is not legal advice and does not create an attorney/ client relationship. Also, there are no recognized legal specialties under Pennsylvania law. Any references to a trust, estate or tax lawyer refer only to the fact that Mr. Fromm limits his practice to these areas of the law. These responses are only in the form of legal education and are intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received. By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction, who is familiar with your specific facts and all of the circumstances and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question. Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency.
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