How will the trust be divided if one of the beneficiaries passed away? 24 Answers as of November 05, 2013

I am the executor of a small trust that has annual payouts. One of the beneficiaries listed passed away. Do the payouts get split amongst the children of the deceased or split amongst the living beneficiaries? Trust states "one share distributed annually and equally to Settlor's 3 siblings, and their issue by right of representation." I don't understand the last part of the sentence.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Christine Sabio Socrates Attorney at Law | Christine Socrates
The share of the beneficiary that passed away would go to his heirs or "issue" and not split among the living beneficiaries.
Answer Applies to: Ohio
Replied: 11/5/2013
Singletary Law Offices, PLLC | Alexis R Singletary
Given the language from the Trust that you cite, then the deceased beneficiary's 1/3rd share would pass down to his or her children in equal shares "by right of representation" of that deceased beneficiary and not to the other two siblings.
Answer Applies to: Washington
Replied: 11/5/2013
Law Ofices of Edwin K. Niles | Edwin K. Niles
Sounds like poor draftsmanship. It means that if the deceased beneficiary had children that deceased person?s share goes to his/her children, in equal shares. But are you trying to administer the trust without a lawyer? Not such a great idea.
Answer Applies to: California
Replied: 11/4/2013
Law Office of David T Egli | David T. Egli
When a beneficiary dies without living descendants will the beneficiary's share be divided among the shares for the other two beneficiaries. However, if the beneficiary has surviving descendants ("issue"), then the beneficiary's share should be distributed to his descendants. The term "by right of representation" tells you the manner in which the share is to be distributed among the descendant's issue. If the beneficiary has three children, all living, then the beneficiary's share is divided equally among the three children. If one child is deceased, then his share goes down to his issue, by right of representation. If that deceased child had two children (grandchildren of beneficiary), then deceased child's share would be distributed equally to his children, making the distribution of the deceased beneficiary's share: 1/3 to each living child and 1/6 to each child of the deceased child.
Answer Applies to: California
Replied: 11/4/2013
Frederick & Frederick PLC | James P Frederick
That sentence means that the children share in the distribution their parent would have received. It is not clear, however, that the provision relates to future distributions, or only at the time of death of the trust grantor. You really need to have the trust reviewed by an attorney to make sure that you are reading and interpreting it properly. The cost of the attorney is paid by the trust. The attorney can protect you from personal liability, in case you get it wrong. There is no good reason not to have an attorney review this for you.
Answer Applies to: Michigan
Replied: 10/31/2013
    Irsfeld, Irsfeld & Younger LLP | Norman H. Green
    Consult your lawyer to be sure. Probably it means that now that one has died, her share goes equally to her children.
    Answer Applies to: California
    Replied: 10/31/2013
    James Law Group
    James Law Group | Christine James
    Looks like it goes to the children of the deceased, but it is hard to say without reading the surrounding paragraphs.
    Answer Applies to: California
    Replied: 10/31/2013
    Law Office of Thomas C. Phipps | Thomas C Phipps
    If the person who died had children, the children will get that share.
    Answer Applies to: Missouri
    Replied: 10/31/2013
    Pingelton Law Firm | Dan Pingelton
    You need to get a lawyer. Generally that deceased?s share would go to that person?s heirs. But get a lawyer to advise you on this, by reviewing the specific terms of the trust.
    Answer Applies to: Missouri
    Replied: 10/31/2013
    Gates' Law, PLLC | Thomas E. Gates
    "their issue by right of representation" states that the payments will go to the decease's children. Also, you are not an executor of a trust, but rather the trustee.
    Answer Applies to: Washington
    Replied: 10/31/2013
    Law Office of Patricia A. Simmons
    Law Office of Patricia A. Simmons | Patrica A Simmons
    The terms of the trust should specify what happens to a deceased individual's share, whether it will go to their heirs or revert back to the trust to be divided among the remaining beneficiaries.
    Answer Applies to: California
    Replied: 10/31/2013
    Danville Law Group | Scott Jordan
    The share that would have gone to the beneficiary is now divided among the deceased beneficiaries children.
    Answer Applies to: California
    Replied: 10/31/2013
    Sebby Law Office
    Sebby Law Office | Jayne Sebby
    The offspring of the deceased child get his or her share.
    Answer Applies to: Nebraska
    Replied: 10/31/2013
    Minor, Bandonis and Haggerty, P.C.
    Minor, Bandonis and Haggerty, P.C. | Brian Haggerty
    "and their issue by right of representation" means that the children of the deceased beneficiary (included legally adopted children) take the deceased beneficiary's share. It's a little vague, as it doesn't make the gift to issue specifically contingent upon a beneficiary dying, but that would be the usual reading of that sentence.
    Answer Applies to: Oregon
    Replied: 10/31/2013
    Peters Law, PLLC
    Peters Law, PLLC | Mark T. Peters, Sr.
    You split the payment up to the deceased sibling to his or her children. By representation means they get the siblings share.
    Answer Applies to: Idaho
    Replied: 10/31/2013
    Law Office Of Victor Waid
    Law Office Of Victor Waid | Victor Waid
    To the children of the deceased sibling.
    Answer Applies to: California
    Replied: 10/31/2013
    The Law Office of David L. Leon
    The Law Office of David L. Leon | David L. Leon
    The deceased person's share should go to the children of the deceased person.
    Answer Applies to: Texas
    Replied: 10/31/2013
    Goldsmith & Guymon
    Goldsmith & Guymon | Dara Goldsmith
    Actually you are probably the Trustee of a Trust for Executor of a Will. I suggest that you have an attorney advise you who has read the entire document and who can confirm the trust or Will's requirements. There may be other issues you need to consider like noticing creditors, etc. before making distributions.
    Answer Applies to: Nevada
    Replied: 10/31/2013
    Durham Jones & Pinegar | Erven Nelson
    Their issue means their children and posterity. So, the deceased children should split a share.
    Answer Applies to: Nevada
    Replied: 10/31/2013
    Ben T. Liu Law Office
    Ben T. Liu Law Office | Ben T. Liu
    The children of the deceased should get the parent's share in equal shares.
    Answer Applies to: Michigan
    Replied: 10/31/2013
    Law Office of Pamela Braynon | Pamela Y. Braynon
    That last part is saying that the beneficiary's heirs will equally share the beneficiary's share.
    Answer Applies to: Florida
    Replied: 10/31/2013
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    The trust should hire an attorney to review it and advise you, that is a legitimate trust expense. More specifically, form the limited facts which you have disclosed, the deceased beneficiary's distribution would be divided among his children.
    Answer Applies to: Michigan
    Replied: 10/31/2013
    Law Offices of Robert H. Glorch | Jeffrey R. Gottlieb
    Every trust is different. It's hard to give precise answer without the full picture. The terms of the trust really need to be analyzed as a whole looking at the entire document. The trustee of a trust is entitled to retain counsel from trust funds and should always have legal counsel available to review and answer these types of questions.
    Answer Applies to: Illinois
    Replied: 10/31/2013
    Kokish & Goldmanis, P.C.
    Kokish & Goldmanis, P.C. | Bernard H. Greenberg
    You start by referring to the terms of the trust. It seems to indicate that the share of a deceased beneficiary will go to their children. Consult with a lawyer specializing in trust administration for assistance.
    Answer Applies to: Colorado
    Replied: 10/31/2013
Click to View More Answers:
12 3 4 5 Free Legal QuestionsConnect with a local attorney