Legal Question in Wills and Trusts in California
revocable trust
my mom set up a trust in california. I live in virginia I am also the succesor trustee. She also put me on all her accounts. These include an ira cd savings and checking. My understanding is that on her death the monies will be in my name and I will be liable for all taxes from the date. Should I remove myself from accounts as I will have control anyway in the trust and if I am not removed what affect does that have. Also does she need to quik claim deed her house to the trust before death or can I do it after her passing.
1 Answer from Attorneys
Re: revocable trust
The revocable trust, in order to be valid, must be properly funded, and, therefore, all properties(whether real or personal) which are intended by the settlor(founder of the trust)to be placed in the trust must be transferred before the settlor's demise. You, as successor trustee, upon your mother's passing, will be personally responsible for the payment of all income and estate taxes attributable to the trust. If you were to remove your name from the various accounts you referenced which apparently you now hold jointly with your mother with right of survivorship,
and these assets were not included in the revocable trust, then you would have no right to access and control them. Otherwise they become your sole property upon your mother's passing.
Remember, however, that the revocable
trust must be properly funded to be valid. That means that the settlor must transfer assets into it before her death.
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