Legal Question in Wills and Trusts in California
Beneficiaries in a Trust
If 5 beneficaries are named in a Trust to receive equal shares of everthing in that Trust, but one of the heirs is specifically named as a sole beneficary of a particular Mutual Fund in the Trust, will that Mutual Fund money be divided between all 5 heirs or go only to the specificly named beneficary?
4 Answers from Attorneys
Re: Beneficiaries in a Trust
That is a sticky issue, because financial companies usually want to pay out funds based on the signed instructions left by the deceased investor, not some unknown trust document. I'd get a lawyer pronto to represent the unnamed beneficiaries to see what can be done, if anything, for a cost effective price.
Re: Beneficiaries in a Trust
One must interpret the provisions in context of the document. That being said, I suspect that the MF goes to the one named beneficiary and no adjustment is done. If the beneficiary designation is in the Mutual Fund itself, then it will certainly go to the beneficiary because it will not become part of the trust estate.
Re: Beneficiaries in a Trust
The specific bequest goes to that one beneficiary. It is most likely that the residuary estate (what is left over after any specific bequest have been distributed) is to be divided among the 5 beneficiaries.
Re: Beneficiaries in a Trust
It usually goes to the specific before the general. To be certain, I'd need to review the trust.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
