Question

If a distribution of a pecuniary bequest to a marital deduction, or by-pass trust is not made within one year after date of death:

a. the bequest begins to accrue interest at 10% from the first anniversary of death.
b. the bequest is forfeited.
c. the bequest must be made within 30 days.
d. the beneficiary of the bequest must file suit.

Answer 1

The outcomes listed (a to d) do not automatically apply when a bequest to a marital deduction or by-pass trust is not made within a year of death; actual consequences are determined by state law and the trust document terms.

Step-by-step explanation:

If a distribution of a pecuniary bequest to a marital deduction, or by-pass trust is not made within one year after the date of death, the impact on the bequest does not fall into any of the provided outcomes (a to d) by default. Estate and trust administration laws vary by state and terms of the governing instrument. In general, if no will or trust is established and a person dies intestate, state laws will determine the distribution of their assets. A trust typically allows assets to be transferred to heirs outside of probate, and most trusts become irrevocable upon death. It is important for estates large enough to be subject to estate tax that distributions, including those to marital or by-pass trusts, are handled according to legal and tax requirements to avoid penalties or negative tax consequences.