Legal Question in Tax Law in California

My mother-in-law is selling her house that is in a family trust. We want as much of the proceeds as possible to go into an account for her care and avoid taking too much of a hit in taxes. Do we keep it in a liquid trust account? Or can we invest part of it to create interest? Our biggest fear is running out of money for her care.


Asked on 2/22/14, 2:03 pm

1 Answer from Attorneys
William Christian Rodi Pollock

Is this her principal residence? If so you may be able to avoid tax on the first $250,000 of gain. Your accountant of tax preparer can help you with that. The trust should be able to invest the proceeds from sale in income producing investments. If you are not sure how to go about that , you probably need an effective investment advisor to help.I would suggest you engage an effective estate planner who should be able to guide you through this process and reccomend assistance where needed. .

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Answered on 2/24/14, 11:08 am


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