Is income from a trust community or separate property?

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Is income from a trust community or separate property?

I am getting married next month and will be the income beneficiary to my grandmother’s trust when she passes away. Provided my grandmother passes away while I am married, will the trust income be separate or community property?

Asked on August 2, 2011 California

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Certain property is considered to be separate property even if someone is married and living in a community property state. Such assets would be property the one of the spouses owned prior to the marriage, any earnings or accumulations aquired after a legal separation or property that was gifted to them or inherited by them during the marriage. So this income would be considered to be separate property. However to the extent that it cannot be traced back or becomes "co-mingled" with community property assets, it can be then be considered to be community property.

Accordingly, try to keep accurate and detailed records as to just what you do with this trust income. It will be critical in determining the division of assets in a divorce.


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