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LegalGems
LegalGems, Attorney
Category: Estate Law
Satisfied Customers: 10484
Experience:  Private Practice; Elder Law Attorney; Estate Planning; Attorney Mentor
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To Legal Gems If we know income/property is going to be

Customer Question

To Legal Gems If we know income/property is going to be disclaimed by a beneficiary, how long is a trustee suppose to hold on to income/property until a written disclaimer is received. Do we need to notify that beneficiary that their inheritence has been
disbursed to other family members? I've noticed there are "living trusts" and "family trusts" - one is done while the person is still alive and the other is after the person is deceased. Is that the only difference? Does the "family trust" shelter inheritance
from creditors and inheritance taxes?
Submitted: 1 year ago.
Category: Estate Law
Expert:  LegalGems replied 1 year ago.

Thanks for opening the new thread. As an individual contributor I need to comply with the terms of the site. I will answer your question to the best of my ability but I will not be online today so if you have any follow up I won't be able to get back to you until tomorrow.

Pursuant to articel 9-9201 the person disclaiming the inheritance must do so within 9 months of the event (ie death). At that point, once the disclaimer is received, the trustee may distribute the property to the next in line.

A living trust is formed while the settlor is still alive. A family trust is similarly formed while one is alive - a family trust is a living trust, but involves more than one settlor (for example, a joint trust for a husband and wife).

Neither trust will provide asset protection - that would be an irrevocable trust- more information on that type of trust here:

http://www.foxbusiness.com/personal-finance/2013/06/14/irrevocable-trust-that-evolves-with/

Again, if you have any follow up, please post here and I will reply tomorrow. Thank you!

Customer: replied 1 year ago.
article 9-9201 can be found where? What if a written disclaimer is not received?
Expert:  LegalGems replied 1 year ago.

I obtained it from a subscription service - Lexis- so I can't link you without a password/username unfortunately.

If the heir does not disclaim, the executor would distribute the property to the heir per the provision of the will/trust.

If the heir fails to, for example, cash the check, it would go to the state's unclaimed property unit.

Customer: replied 1 year ago.
if my executor notifies the heir that he/she has inheritance and I state in my will that this person has 9 months to claim the distribution and the heir does not claim the distribution then the executor can give that portion of the inheritance to the other heirs I've designated in my will?
Customer: replied 1 year ago.
with regards ***** ***** up a family trust is that something an attorney needs to draw up? Upon my husbands death would I merely take the paperwork to my local bank to set up? Would funds in that family trust be usable by me?
Expert:  LegalGems replied 1 year ago.

Limitations can be put on an inheritance; so it is possible to have a time limit for claiming the funds; however, that can delay probate (most probate will take 6 months, so putting restrictions on it can hinder the timeline).

Yes, some people will try and form a family trust on line; but since estate planning is very complicated, it is best to hire an attorney to draft the trust so they may take into account the goals of the client. The trustee would be responsible for disbursing the funds; the settlor may designate which funds (how much, when) the heirs may access. The idea of a trust is it allows the settlor more control than a will.