Irrevocable Trust Questions
Location: California
Father in law had an irrevocable trust leaving his home and belongings to my wife, and when he passed 8 years ago, my wife had the trust updated to her name and put our kids as the beneficiaries. Her and I planned to move into the house someday once our kids moved out. The house had fallen into bad shape, so with our plans to live there eventually, I started rebuilding the house with funds from our mutual bank account that both our paychecks go into. We've put tens of thousands of our martial assets into it. The past year our marriage took a turn, and divorce has been discussed. Does the use of our shared assets count as comeangaling? Does the implied plan that it was to be my home too mean anything? I've read that the trust would need to compensate me for my labor that I've put into the house. She never kept receipts or good records of the spending on the repairs because it was "our" house.
There's a second part, a few years before passing, FIL gave us a large sum to invest as we saw fit for him and any earnings we'd use to supplement ours and his income. After he passed, we sold the assets for a tidy income. He never clearly defined this as a loan or gift. Wife now says that it is part of the trust, even with it not listed as one of the assets. Would this money be part of the trust or ours, hence dividable. I know this one's complicated, so if no one knows that's ok.
Thanks for any input.
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