What happens if a sole trustee dies

A trust is a very common estate planning tool used to pass property to others and to also avoid the probate process. Some inter vivos trusts can be changed or terminated during your life.

What happens to that trust? Every state has its own Prudent Investor rules for trustees. In handling the property in a trust, the trustee has two primary objectives that they have to fulfill:.

When the trustee invests the trust property and makes distributions, they are obligated to follow the intentions of the grantor. Benefit the beneficiaries. Notwithstanding the terms of the trust, the purpose of every trust is for beneficiaries to benefit. As a result, the trustee is equally obligated to make sound investments that earn income for the named beneficiaries and grow the assets in the trust.

Sometimes these two fiduciary obligations can contradict each other, leaving the trustee with a legal dilemma. This is why it is so important to choose the right person as your trustee for your trust. Assuming you have chosen a capable person to serve as your trustee, you can feel confident that your trust is going to be handled in a way that satisfies your intent for the trust but also benefits those whom you named as beneficiaries. To schedule an appointment, call us at November 4, legacy.

Schedule a consultation by calling The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law. By Cindy DeRuyter, J. Trust Administration After Grantor's Death If a trust was a joint revocable trust created by a couple as part of their estate plan, the death of one grantor trustee generally does not require any specific action on the part of the surviving grantor trustee. Responsibilities of the Successor Trustee The successor trustee must follow the terms of the trust agreement.

When the grantor passes, the successor trustee must: Obtain tax identification numbers. When the grantor of a revocable trust dies, the trust becomes irrevocable. At that point, the successor trustee needs a federal tax identification number or employer identification number. In some states, successor trustees also need state tax identification numbers.

Identify, collect, safeguard, and value trust assets. Before distributing assets, the successor trustee needs a clear picture of what assets the trust holds. The trustee inventories assets, arranging for appraisals when necessary. Pay valid debts and expenses. Where a sole surviving trustee T has died, and T's executor E1 then dies having obtained probate in T's estate, can E1's proving executor E2 execise the section 36 1 Trustee Act power to appoint new trustees of the trust?

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