N
nbeth
Guest
California
My parent's living trust has a "A/B" provision: when one spouse dies, the trust is divided into the "A" or survivor trust, and the "B" or decedent trust. This helps reduce taxes for a couple whose joint estate is greater than a certain amount (specified by the IRS, I think).
My father died this year, leaving a lot less than the amount that makes the A/B trust a good idea. Now my Mom's living trust lawyer wants to charge $800 to somehow amend the trust to merge the A/B parts back into 1.
QUESTIONS:
1) CAN he do that (at any cost) when the B trust is irrevocable/unamendable?
2) If he can do it, couldn't it be done for less than $800?
(what all is involved?... is it just a case of 'we can amend the unamendable.. if you pay enough!')
3) How much would it cost Mom if the recommended change was not done at all? (an unneeded B trust probably has some administrative/IRS costs: but now much?)
3)Even if it is worth the cost now, WHY didn't he do it earlier? I.e. should he never have put in A/B provision in the first place; or should he have removed it as soon as (perhaps) laws changed that would make removing it AFTER a spouse's death so expensive? ( the trust was started in 1992, I think, and my father died just this year. The assets were never close to making A/B trusts worth while)
Thanks for any help you can give.
My parent's living trust has a "A/B" provision: when one spouse dies, the trust is divided into the "A" or survivor trust, and the "B" or decedent trust. This helps reduce taxes for a couple whose joint estate is greater than a certain amount (specified by the IRS, I think).
My father died this year, leaving a lot less than the amount that makes the A/B trust a good idea. Now my Mom's living trust lawyer wants to charge $800 to somehow amend the trust to merge the A/B parts back into 1.
QUESTIONS:
1) CAN he do that (at any cost) when the B trust is irrevocable/unamendable?
2) If he can do it, couldn't it be done for less than $800?
(what all is involved?... is it just a case of 'we can amend the unamendable.. if you pay enough!')
3) How much would it cost Mom if the recommended change was not done at all? (an unneeded B trust probably has some administrative/IRS costs: but now much?)
3)Even if it is worth the cost now, WHY didn't he do it earlier? I.e. should he never have put in A/B provision in the first place; or should he have removed it as soon as (perhaps) laws changed that would make removing it AFTER a spouse's death so expensive? ( the trust was started in 1992, I think, and my father died just this year. The assets were never close to making A/B trusts worth while)
Thanks for any help you can give.