Remaindermen predeceasing life tenant

I would be grateful if someone could help:

Will clause on IPDI states

"Subject as above (life interest to spouse), the trustees shall hold the capital and income for such of my children, namely my stepsons A and B my daughter C and my son D as shall survive me and if more than one in equal shares absolutely PROVIDED that:

a) if any beneficiary of mine shall die in my lifetime leaving issue who shall survive me then such issue shall take the share of my estate which such beneficiary would otherwise have taken and
b) if there shall be more than one of such issue they shall take in equal shares per stirpes but so that no-one shall take a share if their parent is alive and takes a share.

Situation - testator has died, life tenant is alive and A recently died leaving 2 children.

On death of the life tenant, does the trust fund pass to:

1- A’s estate and PR distribute according to residuary gift in Will or intestacy?
2- A’s children (or grandchildren) living at the life tenant’s death
3- something else…

My understanding of the clause is that if A survives testator he has then a vested interest as he has fulfilled the condition and if A fails to survive the life tenant A’ share passes to his/her estate, however some expert advice will be appreciated.

Regards
Marcela

“A”, a beneficiary, did not die in testator’s lifetime.

“(a)” referred to above is thus inapplicable.

Thus, on life tenant’s (ie spouse’s) death trust fund passes to A’s estate for distribution under A’s will (or on intestacy).

Malcolm Finney

Thank you so much Malcolm, I really appreciate your help.

This raises another question and I would be grateful if you would kindly assist. A left a Will - would the beneficiaries of the trust fund be the beneficiaries alive at the time of death of the life tenant? or if a beneficiary/ies of A’s Will survived A but predeceased the life tenant the fund passes to the estate of the predeceased beneficiary? Sorry it sounds confusing!

I will take another look a bit later but if it helps my initial thoughts are as follows.

On the death of the life tenant (ie. spouse) the remainder interests of A,B C and D fall into possession. As A had died by this time, A’s remainder interest falls into A’s estate thus then passing under A’s will.

“A left a Will - would the beneficiaries of the trust fund be the beneficiaries alive at the time of death of the life tenant?”

Strictly speaking, at the date of death of the life tenant the remainder interests fall into possession which would mean B, C and D (all alive) inherit with A’s estate taking A’s share.

If the beneficiary under A’s will survives A then the beneficiary inherits A’s remainder interest under the trust at the date of A’s death. If that beneficiary then dies post A’s death, but pre-deceases the life tenant, the inherited remainder interest falls into the beneficiary’s estate and thus passes under the beneficiary’s will.

Malcolm Finney

Thank you Malcolm for your kind reply, you are a star! Any further thoughts will be much appreciated as well as the underpinning law.

Regards
Marcela