Q: My mother and father had an A B trust. My father died 13 years ago. My mother was not aware she had to do anything.
The beneficiaries have not changed. There are only 2. What needs to be done to update this trust before my mother dies, to avoid any tax issues at her death. We are very confused what needs to be done ( property was the only thing in the trust. 1 house, which she lives in and a piece of land. That she would like to sell.
A:
To update your mother's A B trust, it's essential to take a few steps to ensure everything is in order before her passing. Since your father passed away 13 years ago and your mother was unaware of any required actions, the first step is to review the trust documents to understand the division of assets and any stipulations in the trust.
It's advisable to get the trust re-evaluated to ensure it aligns with current laws and your mother's wishes. The property in the trust, including the house and land, needs to be correctly titled in the name of the trust. If your mother plans to sell the land, confirm that the sale proceeds will be handled according to the trust terms.
To avoid tax issues, ensure the trust administration is up-to-date and complies with estate tax regulations. This might involve retitling assets, updating beneficiaries, and ensuring all necessary documents are current. Consulting an estate planning attorney can provide clarity on these steps and ensure the trust is properly managed.
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