My husband and I are getting divorced and he inherited money and a house from his late father that we put into an investment account in the name of our family trust. Does this make it community property?
Answer
No. Initially it was his separate property. Inheritances are always separate property unless and until converted to some other form of ownership. It is now trust property that is owned and controlled by the terms of the trust. If it is a revocable trust and the account is removed from the trust, then it would have to be determined whether the intent of putting the money in the trust was to make a gift to the marital community or not. If the trust was for your mutual benefit, there will be a presumption that it was a gift, but that can be rebutted by contrary evidence.
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