Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Thank you, everybody for your replies. They were very helpful. Turf3 and Diana called it correctly. After checking with my bank the funds from the sale do indeed have to go into a separate account set up in the trust's name. As sole trustee I can open the account, do the taxes via a competent CPA and then administer the funds for my mother. There is no power of attorney involved in a trust; it's the trustee who acts in that capacity.
Life said the state might go after the funds. States are not not in the habit of seizing trusts and administering them if the trusts are being handled responsibly by the trustee, are they? I wasn't aware of this. Fortunately there are no relatives involved to rock the boat. It's just myself and my mother.
First of all it wasn't your concern, I was responding to someone who tell them don't trust anything written her and then gives them a suggestion that was already given.
All income in a revocable trust, including capital gains, generally revert to the grantor (your mother) if those earnings occur when the grantor is alive. That would also include the capital gain exemption ($250K for individual) on a sale of a home that otherwise meets the criteria. I recommend speaking with an accountant about all of this because California has some unusual rules related to trusts and estates.
First of all it wasn't your concern, I was responding to someone who tell them don't trust anything written her and then gives them a suggestion that was already given.
And second of all, you’re still incorrect.
They said don’t trust an ANSWER here. Not written here.
Glad the OP got it straightened out, despite your misdirects.
First of all it wasn't your concern, I was responding to someone who tell them don't trust anything written her and then gives them a suggestion that was already given.
For the record, I encouraged the OP to not rely on any information given here. A lot of people give good suggestions (even you) but it's important that such information be verified. Given the overall complexity and dollar amounts involved, I still suggest that the OP should consult with a professional. A sale will likely result in a significant tax bill and there are likely other issues to deal with if the full range of facts and circumstances are examined.
You need to work with an Elder Law Trust Attorney before you do ANYTHING
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
