What are the options for distributing trust assets after the death of a beneficiary?
When the death of a beneficiary occurs, the trust assets are distributed according to the terms of the trust document. Depending on the type of trust, the options for distributing trust assets after the death of a beneficiary may vary. In Hawaii, when there is a revocable trust, the assets are typically distributed to the remaining living beneficiaries or to be held in trust until the death of the creator of the trust. On the other hand, when there is an irrevocable trust, the assets are usually distributed to the beneficiaries named in the trust, according to the instructions the creator of the trust established. The creator of the trust would designate who the beneficiaries are, and the instructions for distribution of the trust assets in the event of death of a beneficiary. In addition, Hawaii law allows for a third party, known as a Trust Protector, to be appointed by the creator of the trust to manage and make changes to the trust. This allows the Trust Protector to assess the trust assets and determine how the assets are to be distributed. The Trust Protector is typically accountable to the creator of the trust for making decisions regarding the trust. In conclusion, the exact options for distributing trust assets after the death of a beneficiary differ based on the type of trust and are ultimately determined by the instructions laid out by the creator of the trust. Depending on the type of trust, the options may include distribution to the remaining living beneficiaries, holding the assets in trust until the death of the creator, or allowing a Trust Protector appointed by the creator to make decisions about the distribution of the trust assets.
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