How to Do a Living Trust When Separated in a Community Property State?
Legal separation in community property states involves living separately and physically apart. Although the law varies slightly by state, separated married partners terminate the marital community. This means that your spouse is no longer entitled to assets earned by you. Nevertheless, you must be careful when crafting your living trust to determine the exact interest you wish your separated spouse to have in the trust, if any at all. Precision in your living trust helps prevent future litigation in a divorce.
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Instructions
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Draft the name of your living trust on a word processing program. Oftentimes, trusts are named after the person that creates the trust, such as "John Smith Trust." In the first paragraph of the trust, state the date upon which the trust is created, including whether is revocable or irrevocable. Most trust settlors create a revocable trust in the event the settlor changes his mind.
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Establish the trustee. The trustee owns legal title to the assets of the trust and controls the trust. The creator, also known as the settlor, may be the trustee as well.
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Describe the assets included in the trust, including any real property and personal property assets. State how the assets are to be distributed or held by the trust. For example, you may wish to distribute any income from the trust assets to certain beneficiaries and the principal to others. Clearly describe any beneficiaries.
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Declare the status of your separated spouse. Identify your separated spouse by name and specifically designate whether they are to be a beneficiary of the trust. If your separated spouse is to receive nothing, state that you intentionally gave nothing to the separated spouse.
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Sign and date the living trust. Some states require the signature of two witnesses on the trust document. See an attorney to determine whether this is necessary in your state of residence. Keep the document in a safe or safety deposit box.
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Tips & Warnings
This article does not constitute legal advice. See an attorney.
References
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Comments
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I am the Spouse who moved out of home. We have been separated for over 7 years....but have never filed for legal separation. I live in the State of WA and he is in OR. Would I still be entitled to my share of estate? We still communicate, almost daily.
