Full question:
This is a question for a trust in the state of PA. My wife is a benificary of a irrovocable trust setup by her aunt's husband at the time of his death 1992. (Her aunt is a blood relative.) The aunt was entitled to the trust income every year until her death. Upon the aunt's death,which was 3/9/2009 principle was to be distributed to my wife and her brother. The trust language did not specify any successor beneficiaries. Since my wife's brother died 9/2005, and he was not a blood relative of the uncle who set up the trust, how would the principle remaining in the trust be distributed? Note: my wife's aunt is a blood relative(her father's sister). The aunt's spouse is the originator of the trust but is not a blood relative of the deceased nephew.
- Category: Trusts
- Date:
- State: Pennsylvania
Answer:
The distribution of trust property after the death of a beneficiary is governed by the trust document. A trust does not end when the grantor dies; instead, it continues under the management of a successor trustee who is responsible for handling the trust's assets and distributing them to beneficiaries as outlined in the trust agreement.
In this case, since your wife's brother passed away in September 2005 and the trust does not name successor beneficiaries, the remaining principal in the trust would typically be distributed solely to your wife, as her brother was the only other named beneficiary. His death before the aunt's passing means he is no longer entitled to any share of the trust assets. Therefore, your wife would inherit the entire principal remaining in the trust, unless the trust document states otherwise.
Given the complexities involved, it is advisable to consult a local attorney who can review the trust documents and provide specific guidance.
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