What happens to a trust account when the grantor dies?
When the grantor or creator of a trust passes away, the trust agreement dictates the immediate transition of management and asset distribution. If the trust was revocable during the grantor's lifetime, it instantly becomes irrevocable upon their death. The successor trustee named in the legal document steps in to take over administrative control of the trust assets, bypassing the lengthy and public probate court process. The trustee's primary responsibilities include notifying beneficiaries, filing final tax returns, paying off any remaining debts or administrative expenses owed by the estate, and ultimately distributing the remaining trust assets to the designated beneficiaries in strict accordance with the instructions written into the trust document.
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