What are the options for distributing trust assets after the death of a beneficiary?
In Rhode Island, trust assets are distributed according to the instructions of the trustor, or the person who created the trust. After the death of a beneficiary, the trustor may specify how the trust assets should be distributed, divided among the deceased beneficiary’s heirs or other beneficiaries, or donated to charity. If the trustor did not specify a distribution method, the assets of the trust are generally distributed to the next living beneficiary or the deceased beneficiary’s estate. However, the trustor may have included instructions in the trust for the distribution of the assets if the beneficiary dies. Often assets left in trusts are distributed according to the wishes of the deceased beneficiary. For example, someone may leave their assets to be distributed to their children in equal amounts, or to be used to pay for their grandchildren’s college education. When there is no instruction from the trustor and all beneficiaries are deceased, the assets of the trust are distributed according to the laws of intestacy. This means that the assets would be divided among the deceased beneficiary’s legal heirs according to Rhode Island law. Overall, there are many options for distributing trust assets after the death of a beneficiary. When there is no instruction from the trustor, the assets of the trust will be distributed according to Rhode Island’s laws of intestacy.
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