Q: What can be done if "B" trust assets were donated benefiting "A" trust executor and second wife?
Father-in-law is Bill. His 1st wife is Mary. They had a trust that owned 20 rental homes. Beneficiaries were 3 kids. About a year after Mary died, Bill remarried. Ten yrs later, Bill and second wife Joyce created a trust. At that time, 10 rentals were put in a "B" trust (Mary's part of the Bill-and-Mary trust) and 10 rentals were put in a new trust for Bill and Joyce. New bank accts were opened in the name of the new trust. Funds from bank accts in the Bill-and-Mary trust were moved to the Bill-and-Joyce trust. (Deeds were changed.) Most of the 10 rental houses from the "B" trust were donated to a college for a charitable remainder trust, which provides monthly paymts to Bill-and-Joyce. (Not a wise financial decision.) Now Bill has died. Joyce will continue to receive monthly payments on property donated from the "B" trust (though she is not named, of course, in the "B" trust). Is there any legal/practical way for Joyce to make things right for the 3 kids in the near term?
A: The 'B' subtrust of the Mary and Bill trust, holds ten properties.
Joyce presumably has a right to periodic income from rents.
Could a loan be arranged using equity based on one or more properties to secure a loan, which would be repaid on the death of Joyce?
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