Q: When exactly does a revocable living trust commence? Is it when the grantor passes or when the distribution is made?
My father passed in April 2013 and had a revocable living trust. I received my first distribution in March 2014. According to the terms of the trust regarding distribution, it specifically states: one half of the then fair market value of the trust assets upon the establishment of said trust, and the balance thereof, after the 5th anniversary date of the commencement of said trust. Would that be 5 yrs from the day of my father's passing, or 5 yrs from my first distribution? The trustee and I do not speak so I'm trying to figure this out on my own. Thank you for your time.
The second distribution would be five years from the date of your father's death unless there was some language that required the 11-month delay for the first distribution. Normal trust language would create your sub-trust as of the date of your father's death and provide for the first distribution as soon as possible. It is normal for there to be delays with the initial distribution as the estate is settled and while the time period for creditors to present claims expires. There is most likely no reason for a delay at this point in the trust administration.
I would send the trustee a certified letter to ask for an accounting and an estimated date for your second distribution. Even if you are not speaking, you are entitled to know how the trust is being administered.
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