Trustees need to plan for automatic termination of Great Depression trusts.
Dynastic trusts from the days of the Great Depression are near expiration and planning is required, according to Wills, Trusts & Estates Prof Blog in "Preparing for Trust Termination."
Most of the trusts created at that time have mandatory termination dates at which time, the trust assets must be distributed to the residual beneficiaries.
The first challenge for many trusts and trustees will be determining the residual beneficiaries. In many cases they could be distant relations of the original trust settlors and not the same people who currently receive regular distributions from the trusts.
Once the beneficiaries are determined, they will need to plan for how receiving the trust assets, will impact their lives and financial futures. Depending on the amount of money received, the beneficiaries' tax and estate plans could change dramatically.
Those who do not plan appropriately, could face negative consequences that could have been avoided.
An estate planning attorney can guide you in the preparation required, as the trusts near expiration. Call (443) 470-3599 today and schedule a consultation with Maryland Attorney Britt L. Stouffer to learn more about Estate or Elder Law and how she can help you.
Reference: Wills, Trusts & Estates Prof Blog (Dec. 5, 2016) "Preparing for Trust Termination."