Apr
25
WHAT ARE THE RESTRICTIONS ON THE HALF
She can be her own trustee over Pop’s half so she has full management and control over it. She has an absolute right to all the income generated by his half, and she can spend any part or all of the $500,000 if she needs it. The key word is “needs.” She has to spend her entire $500,000 before she starts spending his. Finally, Mom can’t change who gets Pop’s share of the estate after he dies. The beneficiaries named by Pop are the ones who will get the money. And Mom will have to file separate tax returns each year, one for her half and one for Pop’s. That’s it. These are minor restrictions to endure for a savings of
$150,000.