Legal Question in Wills and Trusts in California
My deceased mothers estate
My mother recently passed and left me the sole beneficiary, trustee and executor of her estate which includes a condominium, a money market savings account and a retirement pension which I am unsure if I get money from or not. I have three sets of papers, all made out on 6-12-04. They are ''The (moms name) Revocable Living Trust,'' ''Pour Over Will Of (moms name)'' and ''General Durable Power of Attorney.'' I have heard that since I have the Living Trust that I can avoid probate court. Is this true? Also, is inherited money considered joint property if married in CA? Some have told me that inherited money is not taxed and some tell me it is. Which is right? I was told the will must go through probate in order for me to put her condo up for sale which has a reverse mortgage. My papers already state that I may do as I please with her assets so I am very confused. The reverse mortgage is the only outstanding money she owes. Thank you very much.
5 Answers from Attorneys
Re: My deceased mothers estate
Assets in your mother's name and not in the name of the trust have to pass by probate under the Pour Over will. Assets already in the trust do not have to be probated. Inherited money is separate property unless the person inheriting makes a gift to the community. Inherited money is subject to income tax on the earnings and mom has to have filed by the estate a final income tax return. There is no inheritance tax on the first $2 million if she died in 2007 or 2008. Amounts in excess of $2 million are subject to estate tax.
Re: My deceased mothers estate
follow the terms of the trust. whatever you receive is your separate property.
Re: My deceased mothers estate
Inherited property is your seperate property (make sure you do not comingle). You are not taxed on what you inherit. You should not have to go through probate on the condo as long is it was properly deeded by your mother to the trust.
Re: My deceased mothers estate
If your mother transferred all of her assets to the trust then a probate will not be necessary. Sometimes however people set up a trust but don't transfer their assets into it.
Anything you inherit is separate property.
The pension may have a beneficiary. You should contact the payer of the retirement pension and see if any payments are due you or anyone else.
Re: My deceased mothers estate
I am sorry for the loss of your mother.
You can avoid probate provided the property was transferred into the trust.
The inheritance is your separate property. You must make sure not to comingle it. You are not taxed on your inheritance.
If you would like a free initial consultation, please call me. I have over 25 years experence in estate administration.
Good luck and thank you for your inquiry.
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