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What Happens To A Trust When the Trustee Dies?
Setting up a trust is a common way for people to control distributions to heirs, protect their assets, and avoid probate. A trustee is the individual responsible for overseeing and administering the trust, and while this person could be the grantor initially, it may also be a friend, family member, financial advisor, or an attorney.
If you are a beneficiary, it is not unusual to want to know what happens to a trust when the trustee dies. Stick with us to learn the answer and why it is important.
When a Trustee Dies, a Successor Takes Over
When a trustee dies in California, the trust typically continues to exist under the management of a successor trustee. Most trust documents name this individual, and as the new trustee, they would automatically step in to manage assets, pay the trust’s debts and taxes, and distribute property per the trust document. This transition typically occurs without court intervention. However, if the trust has multiple trustees, the surviving trustee(s) usually continue to serve in this role, unless the trust says otherwise.
What if There Is No Named Successor?
In the event there is no named successor, it may be possible for the beneficiaries to agree on a new trustee, such as a trust company. However, if no one is willing to serve or if heirs cannot come to an agreement, they must file a petition with California’s probate court to appoint a new trustee.
How Does the Death of a Trustee Affect Heirs?
When a trustee dies, it could affect heirs in a number of ways. The loss may pause your inheritance, create administrative hurdles, and increase the risk of probate court involvement. Finding and appointing a successor trustee, if one was not named, could be a long and arduous process that could delay your access to assets while increasing the trust’s expenses.
Connect With Us to Learn What Happens to a Trust When the Trustee Dies
Now that you have a basic understanding of what happens to a trust when the trustee dies, it is time to connect with the compassionate attorneys at Hackard Law. We are the firm for high-stakes estate and trust disputes across California.
Let us be there for you when you need experienced legal counsel tailored to your unique needs. Schedule a time to talk with us, because with our contingency fee program, if we do not achieve winning results, you owe us nothing.