Lemoore, CA asked in Estate Planning and Probate for California

Q: In an A/B trust, can the surviving spouse draw from the principal balance of the Bypass Trust?

Bypass trust states that trust income is payable to surviving spouse, but does not mention principal. Bypass trust was funded with 81% of a property. The property was sold and funds placed in a brokerage account. The brokerage account is now at about half the value of the original allocation. Can the sale of the property be considered income, and therefore distributable?

Both spouses have now passed away, and one side is asking why the principal balance has decreased.

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1 Lawyer Answer
Nina Whitehurst
Nina Whitehurst
  • Estate Planning Lawyer
  • Crossville, TN
  • Licensed in California

A: It is not possible to answer your question without reading the trust. They are not all the same. You should schedule a consultation with a trust administration attorney.

Julie King agrees with this answer

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