How is a trust handled after death?
How is a trust handled after death?
Trust Administration At the surviving spouse's death, the remaining principal may be paid to the decedent's children, to charity, or to other beneficiaries. Income payments and principal distributions can be made in cash, or at the trustee's discretion, by distributing securities as well as cash.
Can a living trust continue after death?
The trust continues to exist only as long as it takes the successor trustee to distribute trust property to the beneficiaries. The successor trustee is also in charge of managing any property left to a young beneficiary in a child's subtrust.
How long does a living trust last after death?
A trust can remain open for up to 21 years after the death of anyone living at the time the trust is created, but most trusts end when the trustor dies and the assets are distributed immediately.
Why would someone put their home in a trust?
The main reason individuals put their home in a living trust is to avoid the costly and lengthy probate process at death. Since you can access the assets in the trust at any time, a revocable trust does not provide asset protection from creditors or remove the home from your taxable estate at death.
