Next Steps for ILs Trust - FIL has passed

[Sandi_k]

OK, so DFIL passed this week. He and MIL had a very...strange relationship, but the upshot is that my MIL has refused to have much of anything to do in regards to the finances, taxes, and their trust.

It is a standard (for CA) A-B trust, and has now become irrevocable with DFIL's passing. Their house is in the trust, along with their bank accounts.

Luckily, we were able to find a copy of their trust (and *that* took a lot of time and effort), so we have the complete document. I am assuming that once we have a death certificate, we need to do some sort of estate bank account, and re-title the house into the B trust.

Does anyone have a checklist for things to do when one member of the couple passes? I think it would be very useful to have such a document for MIL - she does OK when she has marching orders, but I've never had to go through the legal motions for an established trust.

All advice appreciated!

[FlytilFIRE]

Sorry no one has responded yet. I found a book at a thrift store, but unfortunately, I can't find it! It was a How To on trusts- tips on writing one, and, more importantly, tips for the successor trustees and others who have to deal with the trust.

One of the things stresses in every chapter was that everyone should READ THE TRUST AND UNDERSTAND ALL OF THE PROVISIONS. Obviously a bit late in your case, but not too late for those impacted by the legalities of the document.

So poke around and look for a book. I'm sure there are several to choose from.

I also would encourage you to spend a few bucks and take the document, plus the MIL and other successor trustees to a certified Trust attorney and get some advice and ask questions. The attorney might also be able to suggest an appropriate book to help your family.

Good luck, and hope all the family members are on board. That would eliminate 99% of the problems!

[reeshau]

The Nolo guide is The Trustee's Legal Companion, by Liza Hanks and Carol Elias Zolla.  It's comprehensive for many situations and all states, so you might exercise the table of contents to find what you want.

[Sandi_k]

@FlytilFIRE - yes, the family is aligned. It's a standard trust: everything goes to MIL, and then to their boys.

So we need to make sure that the will is filed with the county; bank account is set up in the name of the successor B trust; and that FIL's estate portion is "made portable" in the 2024 taxes with Form 709. FILs investment IRA will need to be transported into MILs spousal IRA, but we've established a relationship with the account agent. In the longer term, I'd like to move it to Schwab, so we can monitor and trade online as needed, instead of going through an agent.

They had an attorney that they had consulted in 2012; not sure if MIL wants to use him again. She's now 87, and doesn't drive much, so that's part of the issue - we'll need to get her to any assistance. SO GLAD we pushed and pushed and found the trust!

[FlytilFIRE]

Sounds like the whole family is on top of everything. I'm also assuming that the B trust successor is the follow on to your MIL.

Good luck.

[secondcor521]

Not directly related to the trust, but if not in place already you probably want to discuss a GDPOA with your MIL, as well as making sure her will and medical directive documents are up to date.

[Sandi_k]

Not directly related to the trust, but if not in place already you probably want to discuss a GDPOA with your MIL, as well as making sure her will and medical directive documents are up to date.

Already done, thanks.