I know I can legally make up a will, but can I legally make up my own trust? Are there forms I can fill out for this purpose?
An estate plan isn't about the documents; it's about the planning that creates the documents.
You can do a trust without an attorney but there are risks. First of all, because California is one of only a few community property states, the forms you use may not address that issue. Second, the form doesn't know what questions to ask about your specific family dynamics. It would be very difficult to have a do-it-yourself trust customized to your needs.
If you decide to do it on your own, I recommend that you have an estate planning attorney review the trust.
My father (who's alive) has a revocable living trust set up for us five kids. My sister is going through a divorce and her husband's attorney is asking for my father's financial information, (specifically) what's in the trust.
Can my father's trust truly be considered part of my sister's marital assets in a divorce?
Also, my sister received $220,000 three years ago from our uncle's revocable trust, which she co-mingled with marital assets to buy real estate. Does she have any entitlement to this inheritance under the division of marital assets in her divorce?
According to California law, the assets that your sister inherited were her separate property. She may have converted those assets to community property, or given her husband some rights to those assets by actions that she took (i.e. buying property). This is why it is important to know the law, or discuss your situation with an experienced estate planning attorney, when you first receive an inheritance – or even earlier.
The best thing she can do now is discuss this situation with her family law (divorce) attorney.
As to your father's living trust, I see no reason that his information is relevant to your sister's divorce.
Postscript on IRAs
In last week's column, investment adviser Bruce Kajiwara advised a reader about switching from a traditional IRA to a Roth IRA. As readers pointed out, there can be taxes or penalties incurred for doing so. As Kajiwara recommended, "discuss any changes with your financial adviser or tax planner to be aware of all tax consequences."
Each week, the Bee's team of local online experts handles reader questions on financial planning, investments, taxes and wills/estates. To see more questions or ask your own, go to: www.sacbee.com/ask
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