If john had a $10,000,00.00 trust fund prior to his marriage but what legal issues arise under the law?

Answer 1

1. What is the beneficiary's interest in the trust fund, is it a present income interest, or is it a future interest to be paid at a time in the future upon the happening of a certain event.

2. Is there a "spendthrift clause" in the trust instrument?

3. Does the beneficiary have the right to withdraw any principal from the trust?

4. Does the beneficiary have the right to terminate the trust?

5. Does the trust have a "sprinkle" or "spray" clause which could by the trustee in his absolute discretion to channel income and/or principal to another beneficiary or beneficiaries?

6. Who else has a beneficial interest in the trust?

7. Is the interest of the beneficiary subject to defeasance?

8. Is the beneficiary a member of a class of beneficiaries which is subject to get larger, such as by the birth of additional children or grandchildren?

9. Does the trust have provisions that would permit the trustee to make a discretionary invasion of principal for the beneficiary's "health, education and welfare"?

10. In most states, a beneficial interest in a trust established by another person is non-marital or non-community property and is not subject to equitable distribution of marital property upon divorce. What is the law of the jurisdiction of the trust situs?

11. One must be aware of the law of the trust situs as compared with the law of the state where the beneficiary resides. Are they the same? It could have a bearing on the rights of the beneficiaries.

Answer 2

It depends on two things -- the wording of the Trust and whether John "co-mingled" the Trust with marital assets in such a way as to convert them into marital property. But without knowing the specifics, generally the $10,000,000 would not be considered marital property or subject to division.

Answer 3

Terry laws differ from state to state. In Louisianna the wife is entitled to absolutly nothing, but alot of their laws are breakoff of French law, which would differ from states like Maine. In Mississippi, if the man begans a life style for his spouse with that money then she is entitled to that lifestyle with that money in cases of divorce. All types of issues arise whenever money, marriage and state government is involved.

Answer 4

Does his marriage automatically entitle his spouse to a share of the trust fund?
Should he amend the trust instrument to name his new spouse as a beneficiary and, if so, what amount?
Can the new wife contest the trust instrument if she is left out?
What are the tax ramifications, if any, of his marriage?

These are just a few ideas.

Answer 5

i think of they'd desire to make it age 18 or regardless of the regulation states while a guy or woman is an grownup. i've got examine of youthful brides attempting to break up and the courts say they are not sufficiently old to convey a petition for divorce, so regardless of the criminal age is to try this would desire to be the criminal age of marriage.