How Can We Leave Our Property to Divide Among Children of Two Marriages?
Full Question:
Answer:
No, you cannot deed the property to the children and also put the property in trust. When property is placed in trust, it is deeded to the trust. Creating a life estate is sometimes used as an estate planning tool to avoid probate and inheritance taxes. It is possible to name a corporate trustee and name a child as a successor trustee, but typically the trust will terminate on the death of the second spouse and the assets will be distributed. We suggest you consult a local attorney who specializes in estate planning and can review all the facts, documents, and tax consequences involved. For further discussion, please see:
http://www.smartmoney.com/retirement/estate-planning/marriage-later-in-life-tricky-for-estate-planning-21281/