What are the options for distributing trust assets after the death of a beneficiary?
After the death of a beneficiary receiving trust assets in Arkansas, the options for distributing those trust assets depend on the language of the trust instrument. The trust instrument is the legal document that governs how trust assets are to be distributed upon the death of a beneficiary. It will specify which assets are to be distributed and to whom they are to be distributed. Many trusts name a specific beneficiary who will receive the assets upon the death of the original beneficiary. This specific beneficiary may be a relative, friend, or charity. If the trust instrument does not specify any other beneficiary, then the assets may be distributed according to the laws of intestate succession. This means that the assets will be distributed according to the Arkansas’s intestate statutes which dictate who will receive the assets if a trust instrument has not been set up. Generally, the assets will be split evenly between the surviving spouse and any surviving children of the deceased beneficiary. If there are no surviving children or spouse, then the assets will be split between the deceased beneficiary’s remaining relatives according to the same laws. In certain cases, the trust instrument may grant the trustee the authority to determine how the assets are to be distributed. The trustee may use their discretion to divide the assets among the beneficiaries. However, the trust instrument can also give the trustee detailed instructions as to how the assets are to be distributed. Ultimately, the options for distributing trust assets after the death of a beneficiary depend on the language of the trust instrument.
Related FAQs
How can a trust become irrevocable?What is an “income in respect of a decedent”?
What is the difference between heirship and intestacy?
What is an inter vivos trust?
What are the legal requirements for making a valid will?
What is a construction trust?
What is a discretionary trust?
What is a disclaimer of inheritance?
What is a division of assets upon death?
What is the purpose of a living trust?
Related Blog Posts
Understanding the Basics of Inheritance Laws: A Guide to Successfully Navigating State and Federal Statutes - July 31, 2023How to Ensure Your Estate Plan Reflects Your Wishes Through Inheritance Laws - August 7, 2023
Protect Your Rights as a Beneficiary: Understanding Your Legal Rights After Beneficiary Inheritance - August 14, 2023
Comprehending the Duties and Responsibilities of Executors of Estates: How to Properly Administer an Estate and Fulfill Inheritance Law Requirements - August 21, 2023
Maximizing the Benefits of Inheritance Law for Family Heirs of Estates - August 28, 2023