Trust versus will?

Question

My dads trust & will are conflictive somewhat.
While the part about 21 yrs or less is ok, the differences are:

Will specifically states what the trust does after disolve in 21 years.

The trust itself (even with amendments) do not state what happens with trust on disolve..other than if I die before 21 yrs.

Note: I am 49, trust cant last past 21 years.
I get income till then... will says I get the full $$$ then.
Trust says nothing other than income (on what I get).

I am 49 now, and will be almost 70 when the trust disolves at yr 21 or sooner.

My dad was a master manipulator.

The trust is such that if I die before age 70, his grandkids will inherit (via trust) 100% .. until the youngest grandkid is 25 (13 now).

The will does specifically state what to do with the trust... so your question is helpful.

Coragraph - you are mostly correct.
However a will can modify a trust... I know that for a fact.

My problem is the trust was modified in 2002 along with a rewrite of the will, and the will states the trust language specifically.

The trust does not spell out a damn thing other than if I die.

I agree that there shouldnt be conflicts unfortunately I believe this to be a badly written trust..

Sufficently enought that a lawyer Im working with & I are considering contesting both the trust & will.

However he will be busy for a few weeks on a trial case (estate related) so I am trying to find out stuff before I see him.

Sorry, my dad died in oct 2006.
The will specifically states the trust will terminate 21 years or sooner..

The trust only talks about termination in the case of my death & youngest grandkid is 25.

There is nothing about the 21years of trust if I live past 70.

I believe the trust will go my way after disolve (yr 21 or sooner) but the trust says anything that proves that. (Me still alive).

While the will does specifically state what (but is likely only on a newly created trust).

Unfortuntely the trust copy I have is dated 1995 with a 2002 amendment..
The will is 2002 also...

But the will talkes about trusts created by this will... so I belive it may not talk about the existing trust (which is not revoked).

Its complicated enought that I didnt expect anything new here.

By age 70, I will have as much in my own accts, as the trust itself now has.

At age 70, the trust (if I get 100%) will be worth $1m plus.... I will have $250-$400 depending on investment & savigns.

Answer 1

It keeps it in trust for 21 years...how odd. Is this will like REALLY old? Are you sure it doesn't say "held in trust until you are 21 years of age"?

In any event assuming what you say is true, the trust would say nothing about what happens after the 21 years because it would dissolve at that time and be of no further force and effect and hence the direction under the will would come into force. I would gather that the will would say "pay to you for your own use absolutley" or something to that effect. ie there are no further restrictions on how or what you do with the money.

EDIT: What do you mean in your additional details about 21 years "or sooner"? Is there some criteria set out for the event of "sooner"?

Is your dad alive and this is a living trust? Or is this a trust that sets out what is to be done with your entitlement under the will until it dissolves (the trust that is)?

EDIT: Based on your further information I now assume that this is a trust created upon the death of your father and the instruction under the will. Should you live until 70, you would get whatever monies that are in the residue of the trust account.

Answer 2

A will takes effect on the death of the person who makes it -- until then, it just sits around waiting to become active.

A trust exists as soon as it is created, and follows its rules for as long as it lasts -- in the case of a trust with a fixed expiration date, at the end of that time, the trust must specify who receives the balance of the trust assets.

The will and the trust really cannot conflict, because only one applies at any given time. Anything transferred into a trust exists outside the will, unless the will first revokes the trust explicitly in the text of the will -- in which case, if the trust doesn't exist anymore, it still cannot conflict.