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NCHammerhead
01-24-2011, 07:49 AM
Here's the basic scenario -- wealthy widowed heiress has remarried to bad guy new husband.. bad guy new hubby has legally adopted wealthy heiress's only child, making him bad guy stepfater.. wealthy heiress dies and leaves part of her fortune to new hubby, and the other part in a trust fund for her daugther when she turns 21.. bad guy new hubby is greedy and wants to get his hands on the daughter's trust fund

Here's the question: if daughter dies before she turns 21, what happens to the money in the trust fund? does it go to the next of kin (bad guy stepfather), does it disappear or get seized by the government?

Not being a trust fund baby myself, I don't know much of how these things work but I'm hoping that there is a plausible scenario where bad guy stepfather thinks he can get the cash

Thanks,
Mike

hammerklavier
01-24-2011, 08:09 AM
The alternate beneficiary would almost certainly be stipulated in the terms of the trust.

jclarkdawe
01-24-2011, 08:10 AM
Easily accomplished. The daughter's trust would properly be set up with a successor if she should die prior to receiving it. So make the successor the bad guy, which would be normal in this sort of circumstance anyway (since I'm assuming mom doesn't know he's a bad guy).

Best of luck,

Jim Clark-Dawe

MissMacchiato
01-24-2011, 08:13 AM
depends what the mother has decided upon in her will.

There might be some clause by which the money will go to the daughter upon her death, reverting to the evil husband in the case of premature death.

The stepfather wouldn't have to actually kill the daughter to get the money though. If he was the executor of the will, he could probably mess around with it a bit... would that suit your story?

mtrenteseau
01-24-2011, 09:07 AM
The stepfather wouldn't have to actually kill the daughter to get the money though. If he was the executor of the will, he could probably mess around with it a bit... would that suit your story?

He could also create a situation where the girl might be sued as her twenty-first birthday gets nearer - maybe she's in a car accident and kills someone. He talks her into signing over the rights to the trust so it can't be touched to pay any settlement.

MissMacchiato
01-24-2011, 09:48 AM
mtrenteseau, high five for deviousness!

Shakesbear
01-24-2011, 10:29 AM
Did the widow inherit money from her first hubby or was it hers to start with? If inherited then first husband may have stated in his will how the money should be used - and there nay be clauses in his will that bad second hubby don't know about and that ultimately screw him and save innocent step daughter.

Is a step relation a next of kin? I thought kin is a blood relation... just a nitpicky moment...

waylander
01-24-2011, 02:03 PM
depends what the mother has decided upon in her will.

There might be some clause by which the money will go to the daughter upon her death, reverting to the evil husband in the case of premature death.

The stepfather wouldn't have to actually kill the daughter to get the money though. If he was the executor of the will, he could probably mess around with it a bit... would that suit your story?

It also depends on who the trustees are, are they independent of bad-guy new husband? A cousin? An old family friend?

mtrenteseau
01-24-2011, 06:38 PM
Shakesbear, the step-relationship is between the girl and the second husband. They're both legal relations of the deceased.

And you've got a point - the trust fund could have been set up by the first husband when the daughter was born, in which case his lawyer probably would have made the wife the secondary beneficiary. If he didn't name anyone else beyond that, then it would revert to the estate, which presumably she left to the second husband.

MissMacchiato, thank you! I actually shortened that post - if the stepfather sabotaged the car, then if she got killed he'd get the money, and when she killed someone else instead he'd talk her into signing over the trust.

One potential wrinkle. The wife could have written a will that gave the second husband a specific amount of money, then the daughter's trust fund, and any residual goes to a charity. If the trust fund reverts to the estate it would go to the charity and not to the second husband.

NCHammerhead
01-25-2011, 06:54 AM
Thanks Everyone -- great info, plus extra points to ponder -- the best of both worlds!