Legal Question in Wills and Trusts in New York

Question on remainder beneficiaries

Hello,

Ten years ago my great-aunt (who has since passed away) set up a charitable trust to benefit public television. Two weeks ago the charitable term of the trust expired, and I have been informed that any remaining funds will now be passed to the eight grand-nieces and grand-nephews my great-aunt named as remainder beneficiaries - myself, my three brothers, two first cousins, and two second cousins. However, there seems to be a problem. Three of the cousins have not responded to the letter sent to each of us by the trustee (Merrill Lynch), and Merrill Lynch informs us that the money can't be disbursed until all remainder beneficiaries have responded. My question is, what happens if they DON'T respond? Is there some way the rest of us can go about getting our share? Is there a set period after which the trustee can go ahead and divide up the money?

I've marked ''New York'' on this form because that was where my great-aunt lived, but I live in New Jersey and some of the other beneficiaries live in California, Colorado, Pennsylvania, Maryland, and Germany. The Merrill Lynch office that contacted us is also in New Jersey.

Thank you!


Asked on 5/14/09, 3:08 pm

2 Answers from Attorneys
Jonathan Chester The Law Office of Jonathan S. Chester, Esq., LLC

Re: Question on remainder beneficiaries

First off, believe it or not, it's not that unusual for beneficiaries to take several weeks to respond to such a letter. They may not know what to do, or are seeking legal advice.

However, if a reasonable period of time passes [e.g. a month] and there is no response, the options are limited.

In New Jersey, the trustee could prepare a 'trust accounting' an seek it's approval in court. If the court approves the accounting, the trustee can make distributions to any and all beneficiaries without the approval of any beneficiary. I would assume there is a similar proceedure in NY.

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Answered on 5/14/09, 3:14 pm
Walter LeVine Walter D. LeVine, Esq.

Re: Question on remainder beneficiaries

I agree with Jon, and add the following. If an unduly long period of time passes without response, the Trustee must take some action through the appropriate Court where the trust "situs" (location) is specified in the Trust document (NY or NJ). It may be one of several types of applications, but the bottom line is that eventually you will get your share. I suggestion, if possible, and I have not seen the document so I cannot tell if this is possible, is that the beneficiaries take the assets "in kind" (as they exist in the trust) as there could be income tax ramifications that may cost you money and this decision should be left to the individuals, not the trustee. If you need more information or assistance, contact me directly.

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Answered on 5/14/09, 3:36 pm


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