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RayAnswers
RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 40077
Experience:  Texas lawyer for 30 years in Estate law
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Mother's possessions were put into a trust--savings, cash,

Customer Question

Mother's possessions were put into a trust--savings, cash, house. Grantor trust has never filed taxes; earnings were too small. Now Mom has died. Does the trust need to be closed by a lawyer or by anyone else?
Submitted: 1 year ago.
Category: Estate Law
Expert:  RayAnswers replied 1 year ago.

Hi and welcome to JA. I am Ray and will be the expert helping you today.

You can abandon the trust here.If there are not many as

The trustee can abandon the assets left over.It is not necessary to go through the courts.Any funds would pass to the state if they go unclaimed here.

The trustee here may want to give notice to the beneficiaries that he/she is withdrawing. This protects the trustee from any personal liability from that date forward here.The beneficiaries then have option to appoint a new trustee of let it go.Eventually unclaimed funds escheat to the state.

I appreciate the chance to help you tonight.Please let me know if you have more follow up.

Expert:  RayAnswers replied 1 year ago.

Distribution of remaining assets..

(760 ILCS 5/4.26)
Sec. 4.26. Small trust termination. To terminate the trust and distribute the trust estate, including principal and accrued and undistributed income, if the trustee determines, in the trustee's sole discretion with the consent of the recipients, that the market value of a trust is less than $100,000 and that the costs of continuing the trust will substantially impair accomplishment of the purpose of the trust.
Distribution shall be made to the persons then entitled to receive or eligible to have the benefit of the income from the trust in the proportions in which they are entitled thereto, or if their interests are indefinite, to those persons per stirpes if they have a common ancestor, or if not, then in equal shares. The trustee shall give notice to the persons at least 30 days prior to the effective date of the termination.
If a particular trustee is an income beneficiary of the trust or is legally obligated to an income beneficiary, then that particular trustee may not participate as a trustee in the exercise of this termination power; provided, however, that if the trust has one or more co-trustees who are not so disqualified from participating, the co-trustee or co-trustees may exercise this power.
This Section shall not apply to the extent that it would cause a trust otherwise qualifying for a federal or State tax benefit or other benefit not to so qualify, nor shall it apply to trusts for domestic or pet animals.
The provisions of this amendatory Act of the 95th General Assembly apply to all trusts created before, on, or after its effective date.
(Source: P.A. 95-605, eff. 6-1-08.)

Expert:  RayAnswers replied 1 year ago.

Illinois here permits you to distribute the remaining funds to the beneficiaries, that ends it no need to resign if you do so.

Thanks again.

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