Trust fund disclosure on asset disclosure?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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PoppyA
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Trust fund disclosure on asset disclosure?

Post by PoppyA » Wed Jun 12, 2019 11:48 am

If a spouse fills out a state financial disclosure form, is disclosure of their assets held in trust required?

The trust was structured for the spouses death.
“Your labor income makes you rich, not your investments.”

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HueyLD
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Re: Trust fund disclosure on asset disclosure?

Post by HueyLD » Wed Jun 12, 2019 12:10 pm

Which state as every state’s disclosure requirement is different?

Here is a reference http://www.ncsl.org/research/ethics/fin ... ncome.aspx

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PoppyA
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Re: Trust fund disclosure on asset disclosure?

Post by PoppyA » Wed Jun 12, 2019 1:38 pm

Michigan.

Thank you for the above, but I still don’t know.?
“Your labor income makes you rich, not your investments.”

Carefreeap
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Re: Trust fund disclosure on asset disclosure?

Post by Carefreeap » Wed Jun 12, 2019 1:57 pm

I would think so unless it's a blind trust in which you have no say in investment decisions.

The purpose of the disclosure as I'm sure you are aware is to prevent even the "appearance" of financial conflict. Presumably even if the spouse is in control of the Trust s/he would make decisions based on the couple's joint best interest.

I'm a big believer in disclosure. Better to know up front if there are issues vs finding out the hard way by being fined, fired or going to jail!

vaught
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Re: Trust fund disclosure on asset disclosure?

Post by vaught » Wed Jun 12, 2019 2:00 pm

I agree with Carfreeap.

It the trust is revocable then it is still considered an asset of the Grantor.

If the trust is irrevocable and Grantor (your spouse) has truly assigned away the assets to the trust and has relinquished all rights of control to the Trustee, then you may could deem such no longer an asset of the spouse. But the fact that you mention that "it was structured for your spouse's death" makes me guess that it is revocable.

Topic Author
PoppyA
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Re: Trust fund disclosure on asset disclosure?

Post by PoppyA » Wed Jun 12, 2019 3:48 pm

Not my spouse. The disclosure is for nursing home care.

Thank you.
“Your labor income makes you rich, not your investments.”

NotWhoYouThink
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Re: Trust fund disclosure on asset disclosure?

Post by NotWhoYouThink » Wed Jun 12, 2019 5:00 pm

If a spouse fills out a state financial disclosure form, is disclosure of their assets held in trust required?
You need to state the question more completely.

What do you mean by "their assets"? If the assets belong to the person filling out the financial disclosure form, then they should be disclosed.

What do you mean by "held in trust"? Held by whom in what kind of trust? Who are the grantor, beneficiary, trustee?

If you are trying to structure an estate plan to have your state tax payers pay for nursing home care, talk to an elder care attorney for how to do that. If you are trying to implement such a plan, talk to the elder care attorney that drafted it.

andypanda
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Re: Trust fund disclosure on asset disclosure?

Post by andypanda » Wed Jun 12, 2019 6:19 pm

"The disclosure is for nursing home care."

When I moved my parents to a comprehensive facility I disclosed enough assets to pay for either 2 or 3 years. This was 2007 and I don't precisely recall, but the facility was fine with it. But it wasn't one of those places that requires you to sign over all of your money in order to get in. I did not disclose the details of my mother's trust. They got paid every month - 4.5 years for my father and 10 years for my mother. Fwiw, I didn't think she'd last another 6 months with her advanced Alzheimer's, but she fooled us all.

When my wife had to move her brother into assisted living after his brain tumor surgery, she showed them one of his bank statements, plus his Social Security retirement amount, and one other monthly retirement check to prove he could afford to stay there at least one year. His was too suspicious and refused to divulge anything financial, so I told her to ask what they'd accept. It's a good thing they took it, that's all she had and he still won't tell.
Just goes to show how useless a POA is if the person won't even tell you where the money is or how much there is.

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