For a Joint Revocable Living Trust, if at First Grantor's death ALL of his assets are transferred to the Surviving Grantor's revocable sub-trust, what happens to his assets at the Second Grantor's death?
Generally, at the first death, the decedent's assets go to his or her trust, called B or credit shelter trust and it becomes irrevocable. The surviving spouse may use this only for certain needs. At the second death, these assets go to the first decedent's beneficiaries. Of course, other provisions may control. The surviving spouse's assets go to her or his trust, called A trust. Good luck. Zaher Fallahi, estate planning and tax attorney, CPA.
The terms of the trust control. However, if the surviving grantor's trust is revocable/amendable, the surviving grantor can amend his/her trust and leave the assets to whomever he/she wishes.
I generally agree with both of my colleagues. But to be safe have an Estate / Trust attorney review the Trust document and advise you. See Avvo.com under 'Find-A-Lawyer'.
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In your example, the surviving grantor controls the disposition of assets, however, there could be language in the actual trust that calls or allows for something different. You should have the trust, and the entire estate plan for that matter, reviewed by an attorney to address your specific questions.
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