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To: NRx

Texas is a community property state, which means any property accumulated during their marriage is owned equally by them. Most community property states have statutes that provide that community property can’t be conveyed at less than fair market value without the consent of the spouse. If that’s the case in Texas and he conveyed property to the trusts without her consent and without adequate consideration, the transfers to the trust would likely be voidable.


23 posted on 05/06/2020 10:38:28 AM PDT by KevinB ("Ignorance more frequently begets confidence than does knowledge." - Charles Darwin)
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To: KevinB

Trusts have no requirement for compensation when items are put in them. I really cannot believe how many people on here have zero clue what they are talking about regarding Trusts. Trusts exist so that you can put items in and control them while shielding them from counting as assets, especially after you die. If you were “compensated”, then that compensation would be taxable income, in which case you just eliminated one of the major benefits of having a trust in the first place. You have heard about the “death tax”? Trusts are how you avoid it. Trusts are also the mechanism to keep you from losing your business when you get sued. Create a Corp (C or S), then a Trust, and the ownership shares of the Corp are then owned by the Trust. You have several businesses ... great, the Trust owns them all. Now, if your business gets sued, they can only go after the assets of the one business, not all of them, and they can only go after you personally for that which you dont have protected in the trust. That is the wifes problem. Billions in the Trust, which she benefitted from for years (lower taxes), but now it is inconvenient for her because she wants half of what is in the Trust ... but she cannot touch it because she is not the Trustee.


28 posted on 05/06/2020 10:54:19 AM PDT by RainMan (rainman)
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