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For the trust to be effective the trust has to be established. Thereafter, even if the trust is established there must be a transfer of assets into the trust (ie. new deed, etc.) for them to be a part of the trust.
Therefore, if the property was never transferred in to the trust - it was still owned and titled in your grandmother's name and passes pursuant to the will.
Now that you say the house is titled in the Trust - then it's owned by the Trust and will pass pursuant to the terms of the Trust. The Trust was funded and therefore there is a Trust.
I'm sorry I still don't understand. The new will doesn't mention the trust at all. I don't think she even realized she had a trust. She just thought she had an old will and was changing her will. Are you saying that the new will is how the property should be destributed? Or since everything is titled in the trust, is it distributed how the trust says.
Thanks again for your help and patience
The new will doesn't have to mention the Trust - the Trust is and has been funded. For example - some Wills don't specifically state each and every piece of real estate or personal property - they just leave whatever they have to so-and-so.
The Trust, as you have described, was funded and therefore it existed - the property within the Trust goes to whomever was/are the beneficiaries of the Trust - so the property goes to the daughters and/or their heirs.
As to the will - it's valid - but only so far was what your grandmother didn't already place in the Trust.