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Financial Planning / Tax Strategies


Subject:  Re: Inheritance Exemption Date:  11/2/2000  8:28 PM
Author:  ptheland Number:  41449 of 132201

Could you comment further on this? For example, an estate plan was set up in 1994 or earlier, with an A-B trust. The husband died in 1995, and the wife is still living as I write. Are you saying that such a trust setup requires update to be "current rule aware"?

Once one spouse has passed away, your options are reduced. Typically, one trust becomes irrevocable at the death of the first spouse. The survivor's trust may still be available for amendment, and if so, should be kept up to date. This becomes vitally important if the surviving spouse remarries.

Also, how do we make certain these documents were "absolutely properly drafted", and if on review now they were found to need change, can they be changed without aborting or jeopardizing the A-B distinction now in force?

My first suggestion is to check back with the attorney who originally drafted the trust. If you're unsure of his/her work, you could have a second attorney review it. The problem, of course, is that since one spouse has already passed away, many planning options are now eliminated. Changes to the document may not be possible once one spouse has passed away.

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