Q for the legal experts about living trust.

[scottmandue]

My parents left us a living trust, my older brother and I are the only survivors and the trust is set up for us to split everything 50/50 and we are all agreed on that.

In the event of my brother passing his share goes to his wife, in the event of her passing it goes to their children.

My wife was not around when the trust was written so if I die everything goes back to the trust (wife is not too happy about that but what has been done is done).

I'm burning the trust paperwork to a DVD, notice it says "in the event of Scott passing the trust goes to his issue."

I presume "issue" means my children? (I have no children)
However my wife has a daughter, but I presume that seeing as her dad is alive she would not be considered "my issue"?

I may consider adopting one of you if I get joint ownership of your Porsche

[1990C4S]

Direct bloodline...lineal descendants. I think...

[MRM]

Don't take anything I say here as legal advice, but I can give you the general definitions and explanation. Every state is different and every situation is unique, so I don't know whether the general rule applies to you or not.

In general, yes, issue means child. Your step daughter would not be considered your issue unless you adopted her. If you adopt a child she becomes your legal issue just as if she was your biological child. The reverse is also true. If you have a child who is adopted by a step-parent, once the adoption is complete she becomes the child (issue) of the adoptive step-parent and is no longer the legal child of the biological parent. Think of issue to mean "legally recognized child".

It seems odd that the trust wouldn't include a provision for you getting married in the future, especially if it provides for you having a child. Have you checked the language to make sure there isn't an inchoate wife provision? If not an easy way to protect your wife in this situation and to make things fair is to purchase a life insurance policy that covers your share of the trust if you die first. The premium for the policy can be paid out of the trust funds. Does that make sense?

[matthewb0051]

Yes, generally issue is children. Agree with MRM, your issue would typically include adopted children. Does it mention per stirpes or per capita? That would further define how the heirs would be included.

I also agree that it is unusual for your potential / future spouse to not be considered. Recommend you have an attorney look just to be sure.

Not intended as legal advice but general information.

[1990C4S]

I can think of several valid reasons for excluding a 'spouse'....

[scottmandue]

Trust was written in 1991 and then amended in 2004 (at that time they cut every out except my brother and I to simplify things).

I married in 2009 and we lived apart until approximately 2011 (so her daughter could finish high school in Oregon).

I'm not good at legalese but it pretty much states everything is split between my brother and I.

If he dies his portion is split between his wife and his issue.

If I die my portion goes to my issue, if I have no issue it goes back into the trust.

[MRM]

That's just strange. Is there any reason your brother and you don't terminate the trust and distribute all the assets of the trust to the two of you right now? I suppose you're taking distributions on the income produced by the trust and there would be a huge tax hit if the assets in the trust were distributed.

[URY914]

In this case "my issue" means me.
I'll PM my address.
Thanks