Are non-cash Trust assets supposed to be added in with the total of Trust cash assets?

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Are non-cash Trust assets supposed to be added in with the total of Trust cash assets?

My mother’s Trust included investments, her house and auto that were paid in full before her death.

Her attorney totaled all of the above using the appraisal amounts of the house and auto with the cash investments and divided it into 50% for disbursement to me and my brother. My brother agreed to not selling the house and car and to letting me take possession. The attorney then subtracted the full appraisal value from my 50% share. My brother received in cash 50% of the investment cash along with the appraisal amounts in cash for his 50%. Was this handled properly?

Asked on May 23, 2019 under Estate Planning, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

Yes, it was. done properly. The non-cash assets had a value; that value needs to be added to the cash to determine the total value. As you each get half the cash, you each get half the non-cash value. But he value of what you actually do receive is valued at 100%--its cash equivalent. To use a simple example: say that the house and car were together worth $200,000 and there was another $300,000 of cash assets. The total value is $500,000. If there are two of you sharing that value, you each get cash and non-cash worth $250,000 (half of $500,000). If you received the car and house worth $200,000, by that, you received $200,000 of value of the total $250,000 you are entitled to. You would be entitled to another $50,000 of assets (to bring the total value you receive up to $250k, or half of $500k) and your brother to $250,000 (half of $500k).


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