irrevocable trust with beneficiary death

What is the name of your state (only U.S. law)? NY

hi, what are the common provisions for distribution of assets in case of the death of a beneficiary?
My grandfather established an irrevocable trust, with his 3 children A, B, C named as beneficiaries. My grandmother is still living, B died recently leaving one child B1 (my cousin).
Is B's 1/3 share divided to the remaining living beneficiaries A and C, or is it distributed to her child B1 (per stirpes or per capita?) A has 2 children A1, A2, and C has 2 children as well C1, C2.
how can I find this information? (is it written in the irrevocable trust?)

Thank youWhat is the name of your state (only U.S. law)?

That should have been written in the irrevocable trust document.

Talk to a trust attorney about this and find out whether beneficiaries have the right to request a copy of the trust--some states allow it and others do not. Is grandfather now deceased or were you asking a hypothetical question?

as kiawah pointed out, that should be written in the trust document.

i would say that commonly, most people want B's share to go to B's children. but there is nothing written in stone. if the assets are left in trust for the benefit of the beneficiaries, it is not uncommon for someone to want to take care of all his children first, before passing interest off to the grandchildren.

so that when B dies, A and C are taken care of exclusively, until they are both deceased.

Dandy Don said:

Talk to a trust attorney about this and find out whether beneficiaries have the right to request a copy of the trust--some states allow it and others do not. Is grandfather now deceased or were you asking a hypothetical question?

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Thank you for your reply. Grandfather is now deceased, it's not a hypothetical question.

TrustUser said:

as kiawah pointed out, that should be written in the trust document.

i would say that commonly, most people want B's share to go to B's children. but there is nothing written in stone. if the assets are left in trust for the benefit of the beneficiaries, it is not uncommon for someone to want to take care of all his children first, before passing interest off to the grandchildren.

so that when B dies, A and C are taken care of exclusively, until they are both deceased.

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Do you mean the trust can exist even after the passing of my grandmother, for the benefit of
A and C?

yes.

unfortunately, most lawyers either dont know or dont tell their clients about this option, because from people that i have talked to, almost no one knows.

it is by far and away the best way to leave your assets. when you keep the assets in trust, and have the proper clause (commonly called spendthrift clause or protection clause), those assets are not touchable by the creditors of the beneficiaries, once the trust becomes irrevocable.

if you have a clause in there that allows you to move the trusteeship to another state, you can find a state that has no rules against perpetuities, and you can keep the trust going until it gets more expensive to deal with because of the number of beneficiaries, than it is worth. but the point is - the beneficiaries can decide.

also, they are never subject again to estate tax, while in the irrevocable trust. they are subject at the time the trustor dies. and then not again, until the assets are actually distributed to individuals, and then the individual dies.

when i explain these options to people, i find that they typically want to do just as i stated - take care of their children exclusively while any of them are alive, and then pass them off to the grandchildren. some want to give equal shares to all grandchildren, irregardless of parent. others give each childrens share to that child's kids, evenly.

but as long as you can put it in writing, you can do it. trusts are very, very powerful. and there is little that you cant do.

but the language of the trust must spell all this out. the trustee cant just assume such and such.

so if the trustor is still of sound mind, the trust can be re-done in whatever fashion is decided. if you are making these kinds of changes, do so with a new trust - not an amendment. amendments can get mysteriously misplaced, etc. and then of course make sure all assets are re-titled into the new trust.

this trust should be notarized, and the assets should be titled with not only the trust name, but also the date - so that there is no room for confusion.