Beneficiary Hierarchy

[Music] So there is a beneficiary hierarchy to trust in California that means not all beneficiaries are equal some beneficiaries outrank other beneficiaries they have better rights than other beneficiaries the starting point is current beneficiaries people who are named now they're supposed to be receiving something out of the trust that's what we call a current vested beneficiary they definitely are gonna have better rights than a remainder beneficiary somebody who's not going to receive their assets until some point in the future once somebody dies or wants something else happens so current beneficiaries are in higher order than the remainder beneficiaries which the rights have invested yet the other difference between beneficiaries comes in the types of gifts that are being given if a beneficiary is given a specific piece of real property that's a specific gift that beneficiary is highest in the pecking order they're gonna get their gift first next in line are people who are getting general gifts those are gifts of money they're gonna get their gifts second last in line are the remainder or residue beneficiaries they have to get to the back of the line they're gonna get their gifts last and so there is a hierarchy in terms of the type of gifts that you're gonna receive and lastly there's a difference between beneficiaries who are getting their gift outright versus those that are getting them by a gift that's held in further trust so if you're supposed to receive something out of the trust outright it's just yours that's a much stronger claim because you can go to the trustee and say hey I'm supposed to have this outright and I want it now or within a reasonable time and you're gonna get that property or gift or cash or whatever it is you're gonna get it into your own hands without any other strings attached whereas if you get your gift in trust meaning it's gonna be continued to be held in a trust now your gift is gonna come with all sorts of strings attached so then you have to look at the document and say well who's going to be the trustee of your money and what are your distribution rights I do you have right to receive income do you have a right to receive principal is there any limitation on the amount of income and principle you can receive because oftentimes there is and you're gonna have to figure that out so yes you're getting a gift but because it's in trust it has a lot of strings attached and it might be a very narrow gift because there might be a lot of restrictions or might be a more broad gift because the restrictions aren't that bad it just depends on your particular trust albertson and Davidson is here to help you fight for your inheritance check out Alda vlog comm for our complete library of helpful legal videos and articles from your favorite California trusts and we'll litigation law firm Albertson and Davidson LLP.