Q: Are trust assets not supposed to be distributed until pour over will is probated?
My grandmother had a living trust that became irrevocable upon her death which was two years ago. The trust instrument says upon her death but after taxes are paid the balance of her trust assets are to be distributed outright. Her IRA and one of her bank accounts weren't in the trust so they have to go through probate. The trustee told us the trust assets could be distributed sooner but now he is saying that he going to wait for the probate assets to be added to the trust assets and then distribute. Does that sound right?
A: Yes, that does sound right. That is why it is so important to make sure all assets are in the trust or have beneficiary designations in order to avoid a "double probate" (trust administration plus probate).
A: Trust assets that were clearly and properly funded into the trust can and should be distributed per the language of the Trust. Assets that are not clearly and properly funded into the trust must be distributed per the Order of the probate court.
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