• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Living trust beneficiary questions

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

tgail

Junior Member
What is the name of your state (only U.S. law)? CA
My mother in law passed away in 2004 she left a revocable trust naming my husband as successor trustee leaving him 100% and then it says please see trust instructions. In the trust instructions she left her house to my husband and everything else to be split up between all her children that can be located. The trust was contested by one of my husbands brothers, The brother that contested has passed away and the court case was dismissed. This is my question 2 brothers have passed away and 1 sister can not be located, 1 of these brothers that has passed had a wife and 2 adult children, the other brother that passed has 2 adult children that he had no contact with most of their lifes, an the sister (has been missing for 24 years and has a mental illness) has 2 adult children (that did not know my mother in law and don,t have any idea how to find thier mother ). So now that leaves my husband and 2 other brothers, how does my husband split up the money and stuff? Which takes priority the trust instructions or the successor truustee getting 100%? The brother who contested the trust passed away, does his wife or children get money (there is a no contest clause in the trust and he did cotest it)? The sister thats missing does her children get money? The other brother that passed away does his children get money? Please help it is so confusing.
thank you in advance
tgail
 


curb1

Senior Member
Are you confusing the directions? As Successor Trustee, and now Trustee, your husband would have 100 percent of the Trust to be distributed in accordance to the Trust. A trust generally gives guidance for the distribution of assets to lineal descendent's in case of death of a beneficiary. Lacking that guidance, the trustee would have the authority to distribute to the remaining living beneficiaries.
 

TrustUser

Senior Member
you simply need to talk to someone who understands the document - because either the document is horribly written, or you have no idea how to read it.

as curb1 said, usually there is language in the document about deaths of beneficiaries. usually it passes to their lineal descendants, but not always. it simply depends on what the grantor chose to do.

the trustee section should be completely separate from the beneficiary section. in the trustee section, there should be no mention of beneficial interest. it only talks about the trustee, successor trustee, and the powers that they have.

the beneficiary section should be the only place that talks about who gets the beneficial treatment of the assets. sometimes they are distributed, sometimes they are left in trust.

the trustee is the manager of the assets, and simply follows the instructions in the trust, making sure that the beneficiaries receive the benefits of the assets, be it ownership or income.

the only thing i might question about what curb said is the trustee having the authority to distribute to the remaining living beneficiaries if there is no guidance. at least to me, that assumes that if there is no mention of lineal descendants, that the default is that there are no lineal descendants. it may be true, but it would surprise me. simply because i believe most of the time lineal descendants do share in the deceased parent's share.

and that ruling may really be different for different states. i know if i were the trustee in this situation, i would get some sort of legal help, since the trustee takes on the responsibility for lots of assets. and he may as well cover his behind, and at least show that he made an honest attempt to follow the instructions, by paying someone who is supposed to know what he is talking about.
 

tgail

Junior Member
Thank you both for your replies, we do have two probate attorneys and they will instruct us on what to do. I was just wondering and did not want to call them right now because the case is still in probate (stocks were not put in the trust) and tying up lose ends from his brother contesting it. like i said thank you very much
tgail
 

Dandy Don

Senior Member
Unless your probate attorneys are also versed in trust law, you may be talking to the wrong parties. You need to be consulting with a TRUST law attorney.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top