When Trusts Terminate: Preparing for a Windfall

You may be surprised - learn what to expect when your trust terminates.

Executive Summary

As a beneficiary of a terminating trust, it is important to understand the timeline for when you will receive your distribution, what form it might take, and the choices you may need to make.

Key points

It can, in some cases, be more than a year from the time a trust terminates to when a beneficiary receives his windfall. Learn the types of circumstances that affect payout timelines.

Many trusts hold a variety of assets. Learn the differences between cash and in-kind payouts and the considerations that might affect the form distributions take.

Some beneficiaries choose to keep their inheritances managed together. Weigh if this makes sense for you.

What you choose to do with your inheritance can affect your existing wealth plans or precipitate the need for additional planning.

Conclusion

Receiving a trust distribution may take some time to actually occur, and there are a number of decisions you may need to make. Learn your options, what to expect, and how to plan for your financial windfall

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