There are NO directions in the document on usage of assets--the beneficiaries are my sister and myself--who are also the POA and the executors of the will---if we fund my mother's trust (from the proceeds of my father's trust as you direct)--and then we DISSOLVE it totally and split it 50/50, will we assume a huge estate tax? Why can't we gift the balance to the family at our own discretion? We two people are the ONLY ones involved-from beneficiaries to co-executors to POA. It's just my sister and myself.

The idea to "gift" to our children and to ourselves in $10,000 increments over time from this trust is merely a method to avoid taxation. I am looking for suggestions on a STRATEGY to minimize taxation or penalties from doing something wrong. I need to avoid a penalty for a violation in disbursement that I may not even be aware of existing.

Not sure of the terminology---both parents set up Revocable Trusts--I guess they become Irrevocable upon death? Anyway, aside from some insurance and stocks, all of my parents assets are in a Fidelity Trust account under my Father's name-so, if that now is my mother's "estate", then yes, I guess so....the end game is that their assets will flow to my sister and myself--whatever mechanism I have to trigger to enact this is fine....all I have is a document that "created" the Revocable Trust for my mother-and her will which stipulates that assets go to it--although beneficiaries are her children. Mom and Dad set these up identically--of course not knowing which one would die first. I am trying to do the disbursement to my sister and myself with only two objectives:

1) it is legal

2) it minimizes estate and all other taxes