SOLUTION: If a Trustee is making a distribution of assets of a trust as follows:
10% to A
45% to B
45% to C
and if C predeceses the Grantor, the Grantor would want the total distribu
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Question 443161: If a Trustee is making a distribution of assets of a trust as follows:
10% to A
45% to B
45% to C
and if C predeceses the Grantor, the Grantor would want the total distribution to A to be 35% of the total trust and B to be 65% of the total Trust. What percentage of C's 45% would need to be distributed to A and to B?
What I got>
If A has 10% of 100% of distribution
and B has 45% of 100 of distribution
what portion of 45% of 100% of distribution would give A 35% of 100% of distribtuion and B 65% of distribution
D= 1000
A = 10% or $100
B = 45% or $450
C = 45% or $450
if C predeced Grantor, C's 45% would go 55.5% to A = $249.75 and 45.5% to B = 200.25
A = $100 plus $ 249.75 for 349.75 or 35% of $1000
B = $450 plust $200.25 for 650.25 or 35% of $1000
Please adivise if this is correct or if I am not understanding the math.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
If a Trustee is making a distribution of assets of a trust as follows:
10% to A
45% to B
45% to C
and if C predeceses the Grantor, the Grantor would want the total distribution to A to be 35% of the total trust and B to be 65% of the total Trust. What percentage of C's 45% would need to be distributed to A and to B?
------------------------
What I got>
If A has 10% of 100% of distribution
and B has 45% of 100 of distribution
what portion of 45% of 100% of distribution would give A 35% of 100% of distribtuion and B 65% of distribution
D= 1000
A = 10% or $100
B = 45% or $450
C = 45% or $450
if C predeceded Grantor, C's 45% would go 55.5% to A = $249.75 and 45.5% to B = 200.25
A = $100 plus $ 249.75 for 349.75 or 35% of $1000
B = $450 plust $200.25 for 650.25 or 65% of $1000
Please adivise if this is correct or if I am not understanding the math.
------------
You're is an acceptable approach to the problem.
You should show more clearly how you got the following percentages:
"if C predeceded Grantor, C's 45% would go 55.5% to A = $249.75 and 45.5% to B = 200.25"
-----
Cheers,
Stan H.
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