Spouse's Rights To a Trust

[johnvanlandingham]

My question involves estate planning in the state of: Arkansas

The question I have is this. My parents got a irrevovable trust back in 1997 and me along with my brother are named as co-trustees. My dad died in 2002 and mother died 3 months ago. We (my bother & I) are in the process of dividing up all the assets (stock) etc. half and half. If I'm married and decided to get divorced, how can I protect the assets now before the divorce so my wife can't get to my parents money.....again they (parents) are deceased.

[aaron]

Are you married?

[johnvanlandingham]

Yes---but looking to get divorced, but I don't want her to get the money my parents (deceased) have in the trust now that my brother and I get the money and stocks...How can I keep her from getting any of it?

[lwpat]

She can't. The money from the trust is not a marital asset unless you place it into a marital account or use it for marital expenses. Just keep it separate and you will be fine. You need to go ahead and retain an attorney now since you are having to ask this type of question.

[aaron]

It makes a difference whether you're planning to marry (structuring your estate in advance of marriage) or married and contemplating divorce (concerned about separate assets). I've moved the thread to a more appropriate forum.

[johnvanlandingham]

Thanks Aaron & lwpat for helping me...Great answers and Aaron sorry for not putting my question in right place.....To make sure I know what to do......1) I'm currently married but planning on divorcing 2) Mother just past away leaving a "boatload of Stocks" in her Trust, by the way she knows about, however, their is about 30,000 in one bank under her name in trust account and 20,000 in another bank in trust account with her Name (my deceased Mother) on the bank account. Now, the 2 major stocks she owns is Chevron and Wal-Mart |(several thousand shares) is in the trust. Can I still keep my deceased mothers trust open so she can't get to it or what. I have already written my brother a check for 50,000 for his share of her house (just sold it 2 weeks ago) but I put my 50,000 portion of the house in the her bank account (Trust account) so it looks like the money is in the trust. Any advice on my next step?

[johnvanlandingham]

Re:Thanks Aaron & lwpat for helping me...Great answers and Aaron sorry for not putting my question in right place.....To make sure I know what to do......1) I'm currently married but planning on divorcing 2) Mother just past away leaving a "boatload of Stocks" in her Trust, by the way she knows about, however, their is about 30,000 in one bank under her name in trust account and 20,000 in another bank in trust account with her Name (my deceased Mother) on the bank account. Now, the 2 major stocks she owns is Chevron and Wal-Mart |(several thousand shares) is in the trust. Can I still keep my deceased mothers trust open so she can't get to it or what. I have already written my brother a check for 50,000 for his share of her house (just sold it 2 weeks ago) but I put my 50,000 portion of the house in the her bank account (Trust account) so it looks like the money is in the trust. Any advice on my next step?

[lwpat]

Not real sure that putting your portion into the trust account is wise. The money from the house should have gone into an estate account and then been disbursed. As long as you then keep it in a separate account and don't mingle funds it will not matter. You just have to be able to trace it.

The only way it will come into play is the judge will look at your ability to pay alimony and child support. Again, you need to see an attorney since what happens is going to be state specific and judge specific.

[lbbk]

They are 100% right on keeping it in a seperate account and not putting it into a joint account. My fiance had money from profit sharing that only he earned BEFORE he was married, got the money a month after he got married and bought a house, bike, etc. And when it came to the divorce, his ex got half of all of it even though he proved that the money was only earned by him before married and should have been considered a pre-marital asset. His BIG mistake was taking the money and putting it into a joint checking account and then buying everything. The lawyer and judge told him that if he would have put it into an account in his name only and bought all of the stuff, it would all be his and she would have NO right to any of it. Once you put any kind of money, inheritance included, into a joint account, they consider it a gift to the marriage. I'm not a lawyer or anything, just giving you a little advice.

[johnvanlandingham]

Please note that both parents are now deceased, however, the bank account and the money in the bank account. My mothers name is still on the bank account and my name along with my brother are listed on checking account too. However, as mentioned above, I have been marriEd 20 years and can I be assured that my soon to be ex-wife go after any of my mom's money. The two stocks she owned as well are still in the trust and I plan on leaving it there. CAN MY DECEASED MOM STILL HAVE AN ACTIVE TRUST LEGALLY? Nothing (no monies) have been moved into our joint checking accounts---me and my wife that is.....Need answers before I file to protect me...