So Your Spouse Kicked the Bucket and Left You With an AB Trust...Fun! But Can You Change It?
Let's face it, inheriting anything after your beloved bites the dust is bittersweet. You're sad they're gone, but hey, new car! But hold on, there's a mysterious wrinkle called an AB Trust. Is this some spy organization your spouse was secretly running? Nope, it's a financial thing, and depending on your DIY skills with legal jargon, it could be a delightful surprise or a bureaucratic nightmare.
AB Trust: The Trust Formerly Known as Maybe
An AB Trust is like a choose-your-own-adventure for inheritance. While your spouse was alive, you both could tinker with it like a fancy mood ring. Felt spendy? Change the trust! Feeling frugal? Trust revamp! But here's the kicker: once your spouse joins the choir invisible, things get a tad less flexible.
Divided We Stand: A Trust Tale of Two Halves
Think of an AB Trust as a see-saw. On one side sits Trust A, which holds assets for your benefit, the ever-lovable surviving spouse. You can probably play around with this side – it's your oyster (or trust fund, whatever). But the other side, Trust B, is all about your dearly departed's stuff. This is the irrevocable side, meaning it's locked tighter than Fort Knox after a clown convention.
Can You Grease the Wheels? Maybe with Enough Honey (and a Lawyer)
So, can you change Trust B, the untouchable vault of your spouse's wishes? Well, unless you have a magic decoder ring or a time machine to rewrite your spouse's will, it's generally a no-go. But there are a few exceptions, like if all the beneficiaries of Trust B decide to hold a kumbaya circle and agree to your changes. This might work if everyone involved is on the same page, financially speaking.
Another option is to convince a judge that your spouse's wishes would have totally been in favor of your modifications. This is where a lawyer comes in, armed with enough legalese to make your head spin. Be warned, this route can be expensive and time-consuming, so make sure it's worth the hassle.
Here's the golden rule: Before you embark on a quest to rewrite the trust, consult with an estate planning attorney. They'll be able to decipher the legalese of your specific AB Trust and advise you on the best course of action.
So there you have it. An AB Trust can be a great financial tool, but it's important to understand its limitations, especially after one spouse passes away. Remember, a little planning goes a long way, and a good lawyer is worth their weight in gold (or at least a hefty inheritance).
