What happens to an irrevocable trust when the trustee dies? The trust continues. A trust does not fail for lack of a trustee.
There would have to be a new trustee acting for the trust.
The new trustee would have to follow the terms of the trust.
If the trust document provides for a successor trustee, then the successor trustee becomes the acting trustee.
If the trust does not have a successor trustee, one can check if the trust provides for a way to have a trustee selected. For example, a trust can say that the beneficiaries can get together and install an acting trustee.
If the trust does not have a way to appoint a new trustee, then the beneficiaries can make an application to the court to appoint a trustee. The court would typically appoint one of the beneficiaries as the acting trustee, if the beneficiaries can agree on which one it’s going to be. If the beneficiaries cannot agree, then the court would appoint an independent third-party trustee of the court’s choosing.
If the trustee of the revocable trust is the person who made the trust, then their death will likely trigger distribution of funds from the trust, which would be up to the successor trustee.
What happens to an irrevocable trust when the trustee dies? It depends on the language of the trust and whether or not the said trustee was the person who created and funded the trust.
If you are looking for an attorney to handle your irrevocable trust matter, we at the Law Offices of Albert Goodwin are here for you. You can call us at 212-233-1233 or send us an email at [email protected].