Legal Question in Wills and Trusts in California
Does Sole Property put into Living Trust gain Community Property during married
Prior to our marriage of 12 years, my husband bought a house as sole proprietor. In 1990 he put it into a Liv. Trust with us both as Trustors/Trustees/Beneficiaries. The attorney and my husband made me sign a quitclaim saying I had to to put it into the Trust. My husband signed his title over to the Trust as well. No prenupts were done. My step-children, now adults are Successor Beneficiaries. We are re-writing our dispersements pages and beneficiaries, as husband is allowing me to choose my own for the "community property" of house since our marriage of 1988 (mortgage paid jointly). My husband says interest & income from assets which include his upcoming inheritance from his parents, are available to me for my care, as well as the 5% allotment . But the essence of "B" trust must all go to his children at my death. Is there in fact any community property for me to place in the A trust upon his demise? I've no kids.
1 Answer from Attorneys
Re: Does Sole Property put into Living Trust gain Community Property during marr
A definite answer to your question can only come after reviewing your property and records, but the basic rule is that community property includes property acquired during marriage as a result of one or both spouse's work efforts (e.g., not inheritance, gifts, or property owned prior to the marriage). From your question, it seems you may have a community property interest in the home, because you and your husband have been paying off the mortgage during your marriage. The amount of this interest would take some calculation.
As for transferring property into the trust, the trust should have language included to ensure that any property transferred to it retains its character (separate property stays separate, and community property stays community). Thus, if the trust were revoked, or the marriage dissolved, each spouse could walk away with what they had transferred to the trust.
I am not sure what your concern is--it sounds as though the trust would provide for your needs if you survive your husband. If you would like to leave whatever property you have to people other than your step-children, ask the attorney and your husband about this--you have the right to do so.
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