There is a trust fund set up to receive when they turn 35 if they pass before then what happens to it?

Question

There is a trust set up to be issued when a person turns 35 years old. If the person dies before then what will happen to the trust. Will the heirs recieve it and if so will they have to wait till the year the person was to recieve the trust or will they be elgible to recieve it after the death of the benificiary?

Answer 1

There should be a contingency set up with the trust, if it was done properly. Otherwise, it goes to the estate of the beneficiary, to be distributed according to law. That law is going to vary by state.

Answer 2

There are any number of possibilities. For example, if the trust document specifies that the money goes to the heirs and that no one can receive the money until they turn 35, then it would be when the heirs turn 35 (which may be before or after when the dead person would have turned 35). The trust document may also specify that the money goes to someone else, not the heirs. Read it.

Answer 3

It depends how it is worded.