I'm Lucy, and I'd be happy to answer your questions today.
A living trust means that she gets the money even if he dies, because money placed into the trust belongs to the trust, not the husband. Changes to the will do not affect a living trust, but a trust document can be changed. It's primarily going to be an issue if the husband is depositing the money into the trust or the wife is putting community property into the trust and the documents don't have a clause stating that this money is an ADVANCE on the community property statement, and that the wife is going this money AS PART OF the divorce settlement, not in addition to. It's possible that her plan is to claim that all the money put into the trust is a gift and that she still gets half of what's left as community property.
Whether this request is a problem depends on the exact terms in the piece of paper he's being asked to sign. California law allows one spouse to give the other money, thereby giving up any right to those funds. The husband will lose the ability to negotiate as to those funds, so typically a person would only sign if the ownership of the property in question was undisputed, or if the wife wants to set up HER OWN living trust that she'll be putting money into it, and she's just asking that he agree to let it happen. If her plan is to establish the trust with funds agreed to be her separate property, then signing the document shouldn't impact you at all. So it's necessary to be clear on where the money in the trust is coming from.
It's possible that she's trying to reduce her own tax liability for 2015, so if she recently came into money in the form of an inheritance or a big bonus or something, that could explain why she wants to sign the paperwork now as opposed to waiting until the divorce is finalized.
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