While it is common for trusts to be distributed in their entirety not long after the grantor dies, some trusts are designed to remain open for the long run.įor example, a dying grantor may create a trust for the benefit of their minor children, but because California law prohibits children from accessing their inheritances until they’re adults, the trustee may need to keep the trust open for years after the grantor dies to carry out their final intentions. If you are the successor trustee of a trust, then you will be responsible for settling the trust, which is another way of saying that you will need to eventually bring the trust to termination by distributing its assets in accordance with the terms of the trust. In the following subsections, we’ll discuss what a trust is and how it is different from an estate. It’s also important for beneficiaries to keep tabs on the trust administration process so that they can hold trustees accountable. It’s important for successor trustees to understand what happens to a trust when someone dies in order to effectively manage the trust and avoid becoming the subject of fiduciary misconduct claims. On the surface, estates and trusts have many similarities, but the inner workings of a trust are actually quite different from those of an estate. Perhaps you are the successor trustee of an irrevocable trust who’s struggling to understand how the process of settling an irrevocable trust after death differs from the process of settling a revocable trust. Perhaps you are the beneficiary of a trust who wants to know more about the process of administering a living trust after death. Perhaps a grantor has named you as the successor trustee of their trust in their trust instrument, and you want to learn about what your job will entail. Marriage and Community/Separate Property.
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