Legal Question in Wills and Trusts in California
My boyfriend is very sick and wants to create a trust immed so that should things turn for the worse, myself and my daughter are protected. The issue is his only asset is his interest, in a recently settled estate trust, whose only asset is an interest in another estate trust. We have been awaiting an accounting for many months in order to know the value of his interest. Since the "current value" will continue to fluctuate, can he fund his trust by just stating it owns his 40% interest in said trust, which is equal to a 20% interest in other said trust? Also, bc he is so sick he wants to make me the trustee, is this a good idea? Lastly, as I have supported us for the past 6yrs, would it help with the taxes to state that he is indebted to me?
5 Answers from Attorneys
It makes more sense for him to create a Will then a Trust as it is faster, cheaper, and easier. The beneficiary can be named the executor of the Will. Unless he would get several million dollars, there will be no estate taxes.
Your boyfriend should speak with an attorney about what are his best options given his personalll and financial circumstances.
Your boyfriend should seek the assistance of an estate planning attorney. If all he creates is a Will, his estate may go through probate which can take up to one year. Depending on his situation, although it may cost a little more up front, he should consider doing a trust. If he would like a consultation, have him give us a call.
I agree with the other attorneys here. It makes sense for your boyfriend to establish and trust and its supporting documents (will, powers of attorney-financial and advanced health directive). He can then protect and provide for both you and your daughter in the manner he intends.As far as his interest in the other estate, he can fund his trust with that estate settlement/asset. It is not necessary to have an exact value in order to so. As long as your boyfriend has the necessary legal capacity, he can name anyone he wants to act as his trustee. Its absolutely fine if that person is you. He should also name someone as an alternate if, for any reason, you are unable to act as trustee.
An estate planning attorney can also assist your boyfriend in obtaining the accounting from the other estate. I'd be more than happy to speak with either one of you. You can email me at [email protected] if you have any questions.
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