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Distribution of irrevocable trust with beneficiary changed by power of appointment

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zarjam93

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

If an irrevocable trust beneficiary has been changed in a will (because of a falling out) via a limited power of appointment, will the state upon death-and I hope this is a long time from now-have to seize and distribute the assets. Or, will the state take the trust to court to demand funds be distributed to the new beneficiary?

Just curious because I believe trusts are privately distributed funds that avoid probate and I believe execute immediately in their distribution.

Thank you for your advice.What is the name of your state (only U.S. law)?
 


justalayman

Senior Member
once an irrevocable trust is established, it is controlled by the trust documents. If there is no ability within those documents to change a beneficiary, the bene doesn't get changed.

as to distribution of any trusts; again, it is determined by the trust documents. Some trusts are created to control assets for an indeterminate period of time. Some direct for disbursal at some pre-determined time.

In any case, the state won't do anything about this. It will be up to whatever party is involved that believes they are not receiving what they should to take the trust to court.
 

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