Administration of Trust C
If the estate's value exceeds a certain value, upon the death
of the surviving spouse a Trust C may have been created. This
third trust, an irrevocable
one, would have contained the assets of the first spouse
to die that exceeded the estate tax exemption.
The provisions for Trust B that have already been listed
would apply to Trust C as well.
In many cases the different trusts have different beneficiaries.
If the beneficiaries of Trust A, Trust
B, and a possible Trust C are different, it is important
for the trustee or trustees to keep all the assets and their
associated incomes and expenses separate. This also requires
the trustee to correctly list all of each trust's assets under
the correct Tax Identification Number, which will be different
for each trust.
The provisions of each trust may vary considerably,
another reason to carefully segregate the assets of
each and account for them separately. If the trusts
have different trustees, a condition that can occur,
it is imperative that the various trustees also work
in concert to make sure no action they take adversely
affects the other trusts.
The trusts also may not expire at the same time. The trustee
of Trust C may wish to keep that particular trust continuing,
for tax purposes. When the surviving spouse dies and the federal
estate tax return for that person is filed, additional federal
estate taxes may be due. Since Trust C may be liable for,
and have to pay, any proportionate share of the tax due, Trust
C may have to be kept intact longer than Trust B.
Aside from that, re-registration of assets, accounting, distribution
of the assets contained in Trust C, and similar responsibilities
and activities are the same as for Trust A and Trust B. THE MAMOLA LAW FIRM, APC is conveniently located throughout Orange County. For additional information, please contact us at (949) 333-6543.