[WSBAPT] Question re how to distribute trust remainder when deceased beneficiary estate subject to Medicaid Recovery

[Donna Calf Robe]

Listmates:
A trust remainder beneficiary dies in 10/2015, well after the trust primary beneficiary.  There are 3 trust remainder beneficiaries.  They will each get about $6,000.  The trust doesn't address an alternative distribution if one of the remainder beneficiaries dies before distribution so that share goes to the estate of the deceased remainder beneficiary.  However, the family of the deceased remainder beneficiary has informed me that she was on Medicaid before she died and the state (New Hampshire) has already recovered the small amount of assets she died owning.  The family isn't going to get the money because of estate recovery so they have no interest in starting a probate to receive the funds on behalf of the state of NH.  In the past I've been able to negotiate with Washington DSHS to allow the family to keep a share of the money if they opened a probate to administer the estate (sell property, and pay a share to DSHS).  But in this case the sum is small and I doubt the family will want to do much for such as minor amount.  I'm not comfortable with the trustee just paying the money to the state without the approval of the heirs (she had no will), and I don't know how cooperative they will be.  Any ideas on how the trustee should handle the distribution of the deceased remainder beneficiary's share of the trust?
Thanks,

Donna

Donna M. Calf Robe
Attorney at Law
DUSSAULT LAW GROUP
2722 Eastlake Ave. E., Ste. 200
Seattle, Washington 98102-3143
Phone (206) 324-4300, extension 113
FAX (206) 324-3106

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