There, in fact was another thread that was somewhat similar, so I apologize.
I am now thinking (and maybe was) that the three beneficiaries are not income beneficiaries but were simply to be distributed a share of the corpus while the remaining two beneficiaries were to receive any corpus left plus share in the income (exclusively). If that is the case, then the estate attorney s correct; the first three would not share in the loss.
I would say handling that in the foregoing manner would make the most sense and be in accordance with the terms of the trust.
