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Mom died after Grandma but before Grandma's trust monies were distributed.

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schmel99

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

My grandmother died and left her assets in a trust to benefit the "living children" and subsequently the living grandchildren if one of her children was deceased. However, my mother died 11 months after my grandma but before any distribution was made.

My mother, unfortunately, has an insolvent estate with many debts.

We are wondering if the trust can now benefit the grandchildren (per the trust documents) without passing through the estate of our mother (which has not and will not be opened by us). My grandma's trust attorney believes so based on the trust documents but we don't want to receive the funds, use them, then have my mother's creditors come after us for the money.

Basically we're looking for a second opinion.What is the name of your state (only U.S. law)?
 


anteater

Senior Member
You aren't going to get a second opinion from anybody who has not read the trust.

(But, if I were a betting man, sight unseen, I'd be willing to wager a Jackson against the attorney if this made it to a court. What the heck... It's only passing up Starbucks for a week.)

That said, since trusts are generally private documents, how would your mother's creditors ever find out?
 

justalayman

Senior Member
so, why was the trust not distributed before 11 months (or longer since it still hasn't)? What are the directives concerning the timing of the disbursal of the trust?
 

schmel99

Junior Member
so, why was the trust not distributed before 11 months (or longer since it still hasn't)? What are the directives concerning the timing of the disbursal of the trust?
Yet-to-be-sold real estate is actually the majority of the trust assets. The trustee has discretion over management of assets and distribution. The siblings were in agreement about holding onto the real estate for the time being.
 

justalayman

Senior Member
If there was no directive to disburse the trust assets at the time of death of grandma, as I understand this, there is not a problem. There was no disbursal to mother required and none actually in process so since mom died before disbursal was intended or required, she is out of the picture and contingent beneficiary steps in.

of course, the only way to know for sure would be to have a lawyer read the actual document and give you an opinion.
 

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