Legal Question in Wills and Trusts in Massachusetts

Re: credit shelter trust

You need to consult with your probate attorney, or another experienced trust & estates attorney.

Generally, a credit shelter trust is intended to protect trust principal, of whatever kind (liquid assets, real estate, tangible personal property), for children and or grandchildren.

Since a surviving spouse can receive property "free and clear" from a predeceased spouse, there is generally no point in a surviving spouse having a right to invade the credit shelter trust, absent certain circumstances (normally exceptions listed in IRS regulations).

Notwithstanding, you should consult with a trust & estates attorney to be sure of all of your options.

Please feel free to contact me if you wish to pursue the matter.

Re: credit shelter trust

Without reading the trust terms it is hard to be definitive. You can invest the money on behalf of the trust in any reasonable manner, but you can only disburse the income from the trust to the current beneficiary.

How much of the proceeds is income is dependent upon the basis of the property and how the Trust defines income.

I would suggest you contact an attorney to review the trust and let you know what you can and cannot do with the proceeds from the sale of the property as well as the tax implicaitons of the sale.

Please feel free to contact me if you have more questions.