[WSBAPT] Trust Question

[John J. Sullivan]

I don't think you need to reconvert back to mom first as long as the trust allows other parties to contribute besides grantor. 

Interesting question on REET will be whether the revocable trust exemption covers both of them or whether you have to claim a gift too from daughter to mom. 

Finally, did daughter acquire any equity while on title? Did mom file a gift tax return? If daughter has no equity the value of her gift back to mom should be under the annual exclusion. 

John Sullivan

Sent from my iPhone

> On Dec 28, 2015, at 8:38 AM, Sabina Ambartsumyan <Sabina at sealegalfirm.com> wrote:
> 
> Hello All!
> 
> I had a quick question hopefully someone can help me with. This is probably a pretty basic question and this is the first Trust I have ever worked on. So potential client came to me and wanted to set up a trust to benefit her children, a son and a daughter. However, after I decided to take the case I found out that PC had in the past quit claimed 3 of the pieces of property to both herself and her daughter. I talked to them and they still want to do a trust to avoid probate. I’m wondering if the best thing to do is a joint trust from the mother and daughter and put everything in their trusts name. However, the daughter will still be the beneficiary, so will that be a problem. Or is it better for the daughter to quitclaim her part of the property back to her mom and then just create a trust for the mom. I appreciate anyone taking the time to help me with this question.
> 
> Thanks,
> 
> Sabina Ambartsumyan
> 
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