Your numbers are significantly large enough that you need to retain counsel to advise you. The terms of trust govern, whether revocable or not.
The irrevocable trust should have its own corpus, not necessarily "cash."
Your rights under either trust will depend on the exact terms of the declaration of trust and whether your grandfather held a power of appointment and exercised it on your behalf.
Do yourself a BIG favor and consult and retain trust counsel. Your question cannot be answered in the abstract. -- Michael
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Please follow the advice of attorney Michael Daymude. How and when the assets of a trust are divided up can have adverse tax consequences, particularly if there has been a delay and the values of the assets have changed.
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I agree with the prior answers, you should retain counsel to make sure its done properly. To answer on what your grandfather should have done, assuming the trust is drafted consistent with most, he needed to divide the investment accounts. The stock would not have needed to be sold, but using the other lawyer's numbers, $750,000 worth of stock needed to be put in the B trust's name. This is a general and very simplified answer, but unless the trust states otherwise, cash is not required to fund the B trust.
Also your grandfather failing to fund that trust at her death does not alleviate the requirement to do so, barring a loophole within the trust allowing for that. The trust likely still needs to be funded and the appreciation from those assets (calculated from the date your grandmother died) needs to be included in that value. It is particularly important if the beneficiaries of her trust are different than his.
As you can see there are a lot of moving parts, so you want to make sure that it is done properly. Consult an attorney to get it in order.
This answer is merely an opinion based on limited knowledge of actual facts and should in no way be deemed legal advice.