Laws, Regulations & Annotations

P

625.0000 PARENT-CHILD TRANSFER

Annotation 625.0235.020

625.0235.020 Trusts—Share and Share Alike. Husband and wife held title to their real property via their revocable trust. Upon the death of the first spouse, two trusts were established (Trust A and Trust B). The real property was transferred to the surviving spouse's revocable trust (Trust A). After the second spouse's death, Trust A became irrevocable. To determine if any transfer has occurred that does not qualify for the parent-child exclusion, it is necessary to compare the value of the real property received by each beneficiary to the value of that beneficiary's share of the trust estate. The value of the total residue should be determined as of the date the trust became irrevocable, not as of the date of distribution. The assets in Trust B would not be considered part of the Trust A estate. Thus, the transfer of assets from Trust B to Trust A after the second spouse's date of death cannot be used to equalize the distribution of Trust A. C 12/16/2009.