| LISTEN TO LAWRENCE
READER QUESTION:
My wife is a beneficiary of an irrevocable trust created by her aunt. The trust consists mainly of the aunt’s home. My wife has two brothers. Several years ago, through DNA testing, we discovered quite a family secret. Her aunt’s husband, whom she always knew as her uncle, was actually her biological father. No one knows, including the aunt. This means her two brothers are actually her half-brothers. When her aunt dies, can the trust be dissolved? Would my wife be entitled to all the assets?
MY RESPONSE
Wow. After almost 40 years of practicing law, I still get questions I have never heard before!
The answer starts with the trust. We need to read it.
The DNA results may have uncovered a remarkable family secret, but they do not automatically change who receives the aunt’s property. If the trust specifically says who receives the house when the aunt dies, that will generally control.
It gets more interesting if the trust does not name the beneficiaries and instead uses words like “children,” “descendents” or “heirs.” Then we may have to determine exactly what those words mean and whether your wife’s newly discovered parentage changes the result.
The same is true of whether the trust ends when the aunt dies. The trust may say that it ends, and the property is distributed. If it does not, we need to see what the trust provides.
There is a good lesson here. Family relationships can be complicated. Trusts should not be. A well-drafted trust should tell us exactly who gets what and when they get it, without leaving the family to figure it out years later. |
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