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What part of this goes to probate?

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sefnfot

Member
What is the name of your state? CA

There is an Irrevocable trust with 3 beneficiaries.
If this First trust has still not distributed to the beneficiaries and one of the beneficiaries passes.
The Trustee/Trustor of the Trust created a new special needs trust for the 1/3 portion of this particular beneficiary.
( I am the trustee of the special needs trust )
Is the whole trust at risk of going to probate when the 1 beneficiary passes before distribution of the original trust?
...or will only the 1/3 go to probate once it is distributed?
The will grants me a majority of the inheritance in this 1/3 estate and a no contest clause.
 


Taxing Matters

Overtaxed Member
Let's be clear on the facts. From the sound of it, the facts are something like this:

Joe sets up a revocable living trust making Amy, Brian, and Carl each one-third beneficiaries of the trust. Joe then dies and the trust becomes irrevocable at that point. A second trust is set up to benefit Carl, and that trust is a special needs trust. Carl's distributions from Joe's trust go to Carl's special needs trust. Carl then dies.​

When Carl dies, what happens to his share of Joe's trust is determined by the terms of Joe’s trust. What happens to the assets in Carl’s special needs trust is determined by the terms of that special needs trust.

Assets in a trust are not affected by a will, so neither Joe's nor Carl's will comes into play and no probate is needed for the assets in the trusts.

If the facts are different from the example I used or if this post doesn't answer your question feel free to reply in this thread and provide the additional information needed to help sort this out.
 

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