Legal Question in Wills and Trusts in California

Dividing Revocable Trust into A & B Trusts

Would you outline the criteria that should be followed to divide a revocable trust into A & B parts upon the death of the first spouse?


Asked on 7/16/00, 4:52 pm

1 Answer from Attorneys
Christine Ruby Christine M. Ruby, Attorney at Law

Re: Dividing Revocable Trust into A & B Trusts

You should divide the trusts into two equal parts. However, in no event shall the B trust exceed the exemption amount for the year of death ($675,000 for 2000). You should put the assets that will appreciate the most in the B trust. You have a lot of discretion and can be creative. Also keep in mind that you will not be stuck with the initial split. You can transfer assets back and forth between the trusts, as long as the transfers are of like value

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Answered on 9/09/00, 2:49 am


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