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[quote=Anonymous][quote=Anonymous]If DH and I each have a revocable trust set up, then if one of dies does that person's revocable trust turn into an irrevocable trust at that point?

More specifically, as is all of his goes to me, and all of mine goes to him. But after that, do all of his assets that come to me, are they then subject to the rest of his trust heirs that comes after me (and vice versa for him)? Or once each of our assets go to the other can they do what they want with them at that point?[/quote]

*if one of dies does that person's revocable trust turn into an irrevocable trust at that point?*  - No.

A trust has the following:
Grantor - The one who creates the trust (in this case your husband).
Trustee - Typically your husband, after his death you, others (your sister, his brother, etc.) after you.
Beneficiary(ies) - Folks that get the grantor's assets after his death.

Typically, your DH would name you as the first Trustee after him as well as the primary beneficiary after you.  You'd do the same.  This way, if he dies first, you become the trustee of his trust and transfer his assets to his primary beneficiary - you.  If he names multiple beneficiaries, you'd deal with it accordingly.

The nature of the trust (irrevocable vs revocable) remains the same.  A simple irrevocable trust would end after its primary purpose has been satisfied (e.g. assets have been transferred over to beneficiaries).  You could set things up such that the trust can create irrevocable trusts on the grantor's death. e.g. DH dies with $3M. His death triggers the creation of 3 irreovocable trusts - one for each of you and your two kids (for example), each with $1M with a stipulation that you cannot withdraw more than 4% from the trust each year until your kids reach a certain age (for example).  [/quote]

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