Hello, This is is in regard to a living trust. Please see below.

Question Details:

My in-laws owned a house in California as joint tenants. While they were still alive, my wife, Debbi, worked with an attorney to help the folks establish a living trust and transfer the house into the trust. The living trust names my wife Debbi as the successor trustee. Debbi has five brothers and sisters. The folks also executed a "pour over" will. The folk's property consists mainly of the house, and the combination of trust and will were set up to split the folk's property equally among the six children. In later years we found ourselves providing financial support to the folks, but the folks considered this to be a loan that was secured by the house. To further insure the likelihood of repayment, the folks added Debbi to the deed. The last of the two parents died 2 months ago. Now that both parents have died, I now realize that we would probably be better off if we could remove Debbi's name from the deed, probably though the use of a Quit Claim, so that there's clear ownership by the trust. This clear ownership by the trust would allow Debbi, acting as trustee, to sell the house, and the family would also benefit from the step-up in the house basis that occurs as part of the tax treatment that occurs with a living trust. I'd like to get your opinion on our options, including the use of the quit claim deed as mentioned above.

Asked 1/13/2010 under Wills, Trusts, Probate | 150 View(s) | More Legal Topics