Legal Question in Wills and Trusts in California
can i give away our pickup truck if it is under our family trust
2 Answers from Attorneys
The disposition of any assets within the trust are governed by the trust language. If all the benificaries and people involved in the Trust do not object, who is there to complain if you act outside the Trust language. But if later they want to attack you they will point out your violation, so it is probably best for you to stay true to the Trust language.
My first question would be: is the truck really in the trust? People often have trusts prepared without transferring assets to the trust. For the truck, title would have to be held in the name of the trust. Second, if this is a revocable "living" trust that you created, then as long as you and any other "Settlors" of the trust (usually both spouses in a simple family trust) agree, you can remove the truck from the trust and gift it, assuming there is no trust language prohibiting gifts (which there shouldn't be in a revocable trust). I would recommend preparing a writing that documents the gift. You also want to know the value of the truck as of the date of the gift. The current gift tax limit is $13,000 for a gift to an individual and $26,000 if the gift is to a couple to avoid filing gift tax returns.
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Can i give away our pickup truck if it is under our family trust? Asked 10/16/09, 9:56 pm in United States California Probate, Trusts, Wills & Estates