Legal Question in Wills and Trusts in California
My parents created a living trust in 2001. My brother and I are the sole beneficiares. The assets of the trust were divided between my brother and I. Among the assets passing to myself was a house that I had lived in and rented from my parents for over 20 years. My father passed away in 2003. My mother evicted me from the house, sold it, and allowed me to use a portion of the proceeds to buy another house worth less than half as much. My father believed that my mother either would not or could not have sold the house based on statements he made to me prior to his passing. My mother passed away in March. She used the proceeds from the sale of the house to fund my brother's profligate lifestyle. But that's another issue. My questioin is: Did my mother have the legal right to sell the house after my father died? Does any part of the trust become irrevocable apon one trustors death? My current attorney says that my mother was obligated to "fund" the trust with the proceeds of the sale.
2 Answers from Attorneys
Unfortuntely, the answers to your questions depend upon the specific terms and provisions of your parent's trust and it is not possible to give you a "general" answer. If I can be of assistance, please do not hesitate to contact me.
While many trusts are set up to have 1/2 become a separate irrevocable trust after the first spouse dies, whther your parents trust was set up that way is impossible to know without reviewing the actual trust documents. If so, then there could be accounting questions as to whether your Mom spent more than her share of the trust principal, but even then some invasion of principal from the irrevocable half of the trust may be permitted. Without seeing actual documents I can't give any real advice. I hope this helps.
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