Revocable Trusts and the Death of the Trustee
A trustee is a person or company who manages the property held within a revocable trust. The trustee plays a critical role in the trust administration, but the death of the trustee does not terminate the trust. The trust will continue to operate under the direction of a new trustee after the death of the existing trustee.
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Successor Trustee
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Most trust agreements or trust declarations specifically identify a successor trustee. The person or company identified as the successor trustee will take over immediately and automatically after the death of the existing trustee.
Court Appointment
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Some trust agreements or trust declarations do not specifically identify a successor trustee. In that case, it is generally necessary to ask a local state court judge to appoint a new trustee. State court judges have authority to enforce trust agreements by appointing successor trustees that either meet the requirements set forth in the trust agreement for a trustee, or that the court deems otherwise appropriate.
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Trust Conditions
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A trust agreement or trust declaration may contain conditions that automatically occur upon the death of the trustee. For example, the death of the trustee may trigger the automatic termination of the trust. Or, the death of the trustee may trigger a distribution of trust property to a beneficiary. Each trust agreement must be examined to determine whether the death of the trustee causes any events to occur for the trust.
Effect
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The death of the trustee generally does not terminate the revocable trust unless the trust agreement expressly provides that it does. In the absence of such express language, a trust will continue to operate even after the trustee dies. A new trustee will simply step into the shoes of the former trustee. The successor trustee will have all the same powers and duties as the original trustee.
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References
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