VIC Does a Beneficiary Have to Pay for Trust Fund Set Up Fees?

[Karen Mulhearn]

My mother sadly passed away quite suddenly last year and in her small will named myself as a 50% beneficiary with 25% each going to her 2 grandchildren, my brother's kids. As she stipulated that their share be set up in a trust fund, do the set up fees come out of the whole deceased estate including my own 50% or from the children's share?

Many thanks

 

[Tracy B]

Hi Karen,

Any fees associated with the trust should come out of that particular trust estate, therefore, their shares, and not from your share. I assume you are over 18 or 21, you are entitled to collect your share as soon as it is distributed. The reason there is a trust created for the grandchildren is because they are too young and cannot legally receive their shares. However, any costs associated with this trust will come out of the trust assets. Your share should already have been collected by you.

 

[Karen Mulhearn]

Hi Karen,

Any fees associated with the trust should come out of that particular trust estate, therefore, their shares, and not from your share. I assume you are over 18 or 21, you are entitled to collect your share as soon as it is distributed. The reason there is a trust created for the grandchildren is because they are too young and cannot legally receive their shares. However, any costs associated with this trust will come out of the trust assets. Your share should already have been collected by you.

Thank you so much Tracy. It is much appreciated. I am over 21 and my share has not been distributed as yet but should be soon. My brother is investigating the various trusts available and associated costs as monies left aren't of large value and obviously wants the best deal for his kids.

 

[Tracy B]

You're welcome Karen. The trustee of the trust for the grandchildren can invest the trust money so that it grows in value.