What is the proper/legal way to divide up the cash in an estate/trust?

Get Legal Help Today

 Secured with SHA-256 Encryption

What is the proper/legal way to divide up the cash in an estate/trust?

Mom passed away recently and had minimal estate, house upside down (which we are letting foreclose, reverse mortgage) and 60K in cash. After the house forecloses, I as the trustee will divide the cash between the 3 of us kids per the trust (we all get along, no issues there). I was told by a friend that I need affidavits/some type of filing with the state to do this legally. My CPA will handle her final tax return, can’t I just write 3 checks to the 3 of us and call it final?

Asked on November 16, 2011 under Estate Planning, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If your mother passed away with a relatively small estate subject to a trust and not a Will and you are the trustee, you need to prepare an inventory of the estate and an accounting as to the bills that will be paid and those that will not.

After you come up with the net amount of the estate, you need to prepare an allocation of what each designate beneficiary will receive and have him or her sign their approval. Once done, you simply issue checks to all the benefiaries after the final tax returns are completed (or if you want to do the distribution earlier, make sure you have enough held back to pay the taxes).


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption