Trust Deed and Inheritance advice please

Your_Hero

Mojisola wrote: »

It wouldn't go into her estate because the money was never hers.

I'm not sure that it could be inherited by your husband (and divided according to to his will) because he has predeceased her. His estate is what he has at his death and this money wasn't his until after his cousin's death.

I think it would either go down his blood line (are there are children?) or go back into Uncle Ted's estate to be distributed according to his plans for the residue of his estate.

Please come back and tell us what answer you get from the experts.

No, that's not how life-interest trusts work. Since her husband is the sole beneficiary (legal term is 'remainderman') he had the absolute right to the capital within the trust. The Life-tenant (i.e. Ted's daughter) is ONLY allowed to have the income from the trust property.

So even if he has passed away, the capital still belongs to his estate...and distributed in line with his will / intestacy rules.

For more info you can read here: http://info.legalzoom.com/happens-remainderman-life-estate-deed-dies-20781.html

and

http://everydaylife.globalpost.com/happens-remainderman-life-estate-deed-dies-19507.html

Remainderman's Rights Usually Survives His Death

Sometimes the remainderman will die before the holder of the life estate does. However, that doesn't change anything as it concerns the life tenant. You still only have a life estate. The rights to the property will go to the estate of the remainderman and will be transferred according to the terms of the remainderman's will or through the intestate probate process if no will exists. For example, if a remainderman dies, the property may be distributed to her children by will after your death.

Edit: it will not go back into Uncle Ted's estate, because he no longer has the legal rights or the beneficial rights of the trust property.