Under the Illinois Trust and Payable on Death Accounts Act, upon the death of the last surviving trustee, the person designated as the beneficiary who is then living is sole holder of the account, unless more than one beneficiary is named and then living. If more than one beneficiary is named and then living, then the beneficiaries hold the account in equal shares as tenants in common. If no beneficiary is then living, the proceeds vest in the state of the last surviving trustee (205 ILCS 625/3). Therefore, if a beneficiary is not living at the time of death of the final trustee, then the predeceased beneficiary does not have any rights to the account.
On a CD held in a Totten Trust with three beneficiaries, if one of the beneficiaries dies and then the accountholder passes, does the money get divided between the two living beneficiaries or to the two living beneficiaries and the estate of the deceased beneficiary?
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