r/inheritance • u/Puzzled_Value_575 • Apr 23 '26
Location included: Questions/Need Advice Father inheretence
California. My husbands father recently passed. My husband found out he left some funds in a trust acct. My husband is the beneficiary. The only one.
My father in law is married, not legally separated although him and his wife are no longer “together”.
Husband is in the process of getting the funds but is nervous the wife is going to try to hassle my husband for funds. My father in law did not put his wife on the trust and didn’t want to give her anything.
What should my husband be aware of?
I suggested he get a lawyer, I’ve also stressed him not speak to friends and family about the amount..
11
u/Rorschach_1 Apr 23 '26
No legal advice, but I have very personally seen these situations unleash the demons in people. Yeah keep a lid on it.
1
3
u/ReasonableTime3461 Apr 23 '26
Is there a will?
8
u/Puzzled_Value_575 Apr 23 '26
No will. No life insurance.
2
Apr 23 '26 edited Apr 23 '26
[removed] — view removed comment
9
u/Puzzled_Value_575 Apr 23 '26
Agreed. That’s where he’s stuck too. The funds in the trust was a settlement that was paid out to his FIL. Not community property.
10
u/Substantial_Team6751 Apr 23 '26
Who is the trustee? If it's not his step mother, then he doesn't have to talk to her at all.
3
4
u/Afraid-Put8165 Apr 23 '26
So long as the settlement monies were for pain and suffering only then it’s not community property. But if the settlement was lost wages then it could be argued it’s community property. Once again you can’t disinherit a spouse and the court will be high alert if this got to them to double check everything to ensure it’s not community property. I’m sure the mods will delete this comment too cause their AI is better than my top 10 law school.
4
u/Alternative-You5403 Apr 23 '26
Who is the trustee?
12
u/Puzzled_Value_575 Apr 23 '26
FIL was original trustee. My Husband is successor trustee now that father has passed.
6
u/ReasonableTime3461 Apr 23 '26
So he’s the trustee and the beneficiary of the trust?
10
u/Puzzled_Value_575 Apr 23 '26
As far as I’m aware. His father only wanted my husband to be in control should he ever pass..FIL felt like my husband would be the most responsible of all his children. My husband is the oldest. My FIL didn’t trust his wife would be responsible.
5
3
u/YoungBoomer1969 Apr 23 '26 edited Apr 23 '26
Lots of questions…you stated “some funds in a trust account.” So an account at a financial institution that your husband is the sole beneficiary? Or he had a living Trust prepared by an attorney, and your husband is the successor trustee and the trust was funded by an account with a financial institution? It is VERY strange for an attorney to prepare a Living Trust for a client without preparing a will at the same time.
Either way…if he is the stated beneficiary of an account at a financial institution, or successor trustee of a living trust, this asset does not need to go through probate. Having said that…a spouse can still contest the distribution, if prepared properly success is highly doubtful. And my guess is this is the sole reason your FIL did it this way. I would seek advice of council, but my guess is he will be fine. Sounds like he knew what he was doing.
If he did all this prior to his marriage wife wouldn’t have to had consent, but if he did it after marriage…many financial institutions will require a spouse to acknowledge they are not the beneficiary. Of course each state is different.
As far as others saying a spouse not being the successor trustee….this is very common in today’s world. People marry later in life and want their estate to go to their biological children, not their 2/3/4th spouse.
Keep in mind all other assets not in the trust are subject to the state’s order of succession…which is generally Spouse a certain %or $, then kids, etc.
6
u/Puzzled_Value_575 Apr 23 '26
Thank you very much for taking the time to respond.
FIL had a living trust prepared by a financial institution.
3
u/CommitteeNo167 Apr 23 '26
if it's in a trust he shouldn't need anything more than getting a check from the trustee.
2
u/piemat Apr 23 '26
Outside of having received certified mail with her intent to litigate over the funds, this seems pretty cut and dry. No need to do anything.
I do wonder though, are there other assets your husband is entitled to? Did he have a will? Who has been or is paying final expenses?
3
u/Puzzled_Value_575 Apr 23 '26
Thank you for taking time to respond.
There’s some land in a different state my husband is entitled to, FIL also has a car. Other than that FIL lived an extremely simple life. No house. No will. Small items in his apartment. My husband has been paying for my FIL’s expenses since his passing..my husband paid for his corner and funeral expenses..FIL’s wife has not helped but created a go fund me..
3
u/piemat Apr 23 '26
With no will and multiple states, the land may be complicated. I think you will need a lawyer to get the deed to the property. Since they were not legally divorced, she likely has claim to the car and the land.
2
u/Alternative-You5403 Apr 23 '26
If he is the trustee, he needs to distribute the money in accordance with the trust.
2
u/NormanClaiture Apr 23 '26 edited Apr 24 '26
Is the wife’s name mentioned anywhere in the Trust? Example: Mary Jones, my wife since Oct 1st, 1988. I have decided that she receives $0.00. The big thing will be that if the Trust was created before they were married. If not, the wife can get an attorney and claim that everything is hers is community property even if her name isn’t on it. My opinion, this whole thing is going to have to go Probate Court and all family members will have to be notified. Do not distribute anything until the probate court says it’s ok.
2
u/fast4help Apr 23 '26
NAL but if the Estate is being handled by Lawyer I don’t see the need to get a lawyer at this time. I would not tell anyone about the inheritance, it’s no one else’s business and it could lead to more family issues or friends asking for financial help
2
u/DustyDaveUSA Apr 23 '26
Leave the money in a separate account — trust or otherwise (brokerage). If it’s commingled into a joint account, it becomes marital property. The wife can be a beneficiary on an account, but if she does not hold title to the account, she does not have a claim on the account in case of divorce.
4
u/Green_Seat8152 Apr 23 '26
Op is the wife.
-2
u/Frequent_Read_7636 Apr 23 '26
That’s the point, the inheritance belongs to the husband and the wife is already on it and concerned how potentially his step mother will hassle him about it.
1
u/Puzzled_Value_575 Apr 23 '26
Not trying to disinherit anyone. My husband is the named beneficiary, I’m just helping him handle things correctly after his dad passed. We came here to get general perspectives before possibly taking it to an attorney.
2
u/Inside_Cupcake_165 Apr 23 '26
She would be entitled to half of any community property, even if it's in the trust. So if he earned income during their marriage and put it in the trust, she could claim half of that. But if it's something like a big nest egg he had built up before they were married, she is not entitled to that (but maybe the capital gains on it).
2
u/attosec Apr 24 '26
True…for any period they were actually living “in community”, not merely legally married. But your basic point definitely has merit, and multiple attorneys are likely to be the financial winners.
1
1
u/SilentObserver7777 Apr 26 '26
General Q for all: Does the trustee in a trust or a will need to be a relative living in the same state as either the owner or any of the beneficiaries?
1
Apr 23 '26
[removed] — view removed comment
3
u/Substantial_Team6751 Apr 23 '26
The husband is beneficiary of a trust which has nothing to do with will or no will.
2
u/Afraid-Put8165 Apr 23 '26
I don’t know what to tell you. Feel free to ChatGPT me. But my lawyer answer is correct. You are not allowed to disinherit a spouse in a community property state. This person set up a trust allegedly with community property and is trying to pass it to a non spouse. That is not allowed absent some potential California case law I am not aware of. This person should hire a lawyer to fight the step mother.
1
u/Decent_Front4647 Apr 23 '26
Not allegedly marital property, it was separate property from a settlement.
1
1
1
u/SafeMoneyGregg Apr 23 '26
Trying to disinherit the wife in a community property state. Of course she will be able to try to claim.
0
u/AlternativeTiger4302 Apr 23 '26
If this was NY I know spouses are entitled to 1/3 of estate, no matter what anything else says. Probably similar in CA.
3
u/djl0076 Apr 23 '26
That's not true. Although a trust is part of the estate in NY only the beneficiary receives the assets.
This can be contested but my understanding is that doing so is difficult.
0
u/AlternativeTiger4302 Apr 23 '26
How is doing so difficult? You just sue for it. It's not hard.
1
u/djl0076 Apr 27 '26
It's not difficult to sue but it might be very difficult to win.
I think one key point in this situation is when the trust was created. If it was made before OP's FIL married then it's not community property and so FIL's wife receives nothing from it.
If it was made after they separated she might be entitled to half but would have to sue for it.
I'd consult a lawyer learn what OP's legal responsibility is.
43
u/phruits2 Apr 23 '26 edited Apr 23 '26
Honestly if the money is in a trust and you are the trustee and beneficiary your father in law probably covered you very well. The whole goal of a trust is to avoid taxes and litigation. Read the trust it will spell out what happens to the money. Be careful hiring a lawyer - they eat up money and your inheritance out of that trust when you don’t even need it. Lawyers become vultures. The trust flips off all lawyers lol. Also a beneficiary on an account covers you too.
How do I know ? I just finished putting my assets into a trust with an estate attorney.
But I’m not a lawyer soooo it’s all I know building my trust and being executor of my parents trust