Saturday, February 28, 2015

If there is not enough money left in a trust to pay out all those named, how is the remaining money that is left divided? Do those who were ...

Question

If there is not enough money left in a trust to pay out all those named, how is the remaining money that is left divided? Do those who were supposed to get the most (largest percentage of trust), get whatever is left after all bills are paid out or is the amount divided equally?



Answer

The residual trust funds are distributed to beneficiaries based on terms of the trust. There

is no reason to divide such amounts equally unless supported by trust provisions. If a

beneficiary is entitled to 50% of trust distribution, the amount will make no difference

unless the trust provides so.



Answer

It will depend on what the trust states. I suggest you ask a probate/trust attorney to review it for you (the cost will be minimal I am sure) and explain to you the way to handle the distribution.

If I can be of assistance, please contact my office for an appointment (904-997-1031)



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