If a successor trustee is named in a trust, then that person would become the trustee upon the death of the current trustee. At that point, everything in the trust might be distributed and the trust itself terminated, or it might continue for a number of years.
Why would a trust be terminated?
Termination can also take place if a trustee violates their fiduciary duties such as stealing property or self-dealing. Contest termination. When beneficiaries file legal disputes or contests against the trust itself or another beneficiary.
Who are the next of kin of a deceased person?
9.1 When an intestate is not survived by a spouse or partner, each jurisdiction makes provision for the distribution of the intestate estate to the next of kin, that is the nearest relatives of the deceased and, in some degree, their issue.
When should the successor trustee take over the trust estate?
Furthermore, the successor Trustee may believe they have a moral duty to take over management of the Trust. For example, if your father creates a Trust, and is the currently acting Trustee, and you are one of three children, but only you are the named successor Trustee, you may feel obligated to protect your father.
How is a revocable trust settled after death?
The process of settling a revocable trust after the trustee’s death is similar to probating an estate. The successor trustee performs duties much like those of a personal representative. However, there are a few key differences. First, the trust does not have to pay the decedent’s debts first, nor is it subject to full probate.
Can a trustee enforce the terms of a trust?
Trustees have fiduciary duties to the beneficiaries of the trust and while there is no probate filed, the court is available to enforce the terms of the trust. Again, for details review the appropriate article on this site.
