Estate Planning · Haute Lawyer Network
What Happens to a Trust After Death?
Last reviewed: October 2026 · Jurisdiction: United States (examples: Uniform Trust Code states, California)
When the grantor of a revocable living trust dies, the trust becomes irrevocable and the successor trustee named in the document takes over. The trustee notifies beneficiaries, inventories and values the assets, pays debts and taxes, then distributes the property or keeps it in trust as the terms direct. Most trusts are settled without probate court.
| Key facts (United States; examples from the Uniform Trust Code and California, as of October 2026) | Rule | Source |
|---|---|---|
| Revocable trust at the grantor's death | Becomes irrevocable; the successor trustee takes over | Trust document; state trust code |
| Notice to beneficiaries (Uniform Trust Code states) | Within 60 days after the trustee accepts the job or learns the trust became irrevocable | Uniform Trust Code § 813 |
| Notice to beneficiaries and heirs (California) | Within 60 days after the trust becomes irrevocable | Cal. Prob. Code § 16061.7 |
| Deadline to contest (California) | 120 days after notice, or 60 days after a copy of the trust is delivered, whichever is later | Cal. Prob. Code § 16061.8 |
| Tax basis of inherited assets | Generally reset to fair market value at the date of death ("stepped-up basis") | 26 U.S.C. § 1014 |
| Trust income tax return | The now-irrevocable trust gets its own EIN and may need to file Form 1041 | IRS: About Form 1041 |
Step 1: The successor trustee takes over
When the grantor dies, the successor trustee named in the trust document steps in. The trustee locates the original trust and any amendments, gets certified copies of the death certificate, and gets a new taxpayer ID (EIN) for the trust, because it can no longer use the grantor's Social Security number. Many states then require the trustee to notify beneficiaries within about 60 days. That's the rule in states that adopted the Uniform Trust Code, and California's notice under Probate Code § 16061.7 also starts the clock for anyone who wants to contest the trust.
Step 2: Gather, inventory and value the assets
The trustee identifies everything titled in the trust (real estate, bank and brokerage accounts, business interests, personal property) and gets date-of-death values. Those values usually become the beneficiaries' new tax basis under IRC § 1014, which can sharply reduce capital gains tax when the assets are later sold. Assets that were never transferred into the trust may still need probate or another transfer process.
Step 3: Pay debts, expenses and taxes
The trustee pays the grantor's valid debts, final expenses and administration costs, files the grantor's final income tax return and any trust income tax returns, and files a federal or state estate tax return if one is required. Working with an estate attorney and an accountant matters here, because distributing too early can leave the trustee personally exposed if a debt or tax turns up later.
Step 4: Distribute or keep managing the trust
Once obligations are covered, the trustee follows the trust's terms. Some trusts distribute everything outright. Others keep a share in trust for years, often for minor children, a beneficiary with special needs, or for asset protection, and the trustee keeps managing and reporting on it.
Revocable vs. irrevocable: what changes at death
| While the grantor is alive (revocable) | After the grantor's death (irrevocable) | |
|---|---|---|
| Who controls the assets | The grantor, usually as their own trustee | The successor trustee, bound by the trust terms |
| Can the terms be changed? | Yes, by the grantor at any time | Generally no, except by court order or a state-law procedure such as decanting |
| Tax ID | Usually the grantor's Social Security number | Its own EIN |
| Duties owed | Mostly to the grantor | Fiduciary duties to the beneficiaries |
How long does trust administration take?
It depends on the assets and the people. A trust holding only bank and brokerage accounts, with cooperative beneficiaries and no estate tax, may wrap up within months. Real estate that has to be sold, a business interest, an estate tax return, a contest, or shares that stay in trust can stretch it to a year or more.
Talk to an estate planning or probate attorney
- Find an Estate Planning & Probate Attorney · Find an Estate & Trust Attorney
- Richard Scott Van Dyke — San Diego, estate planning, probate and trusts, Van Dyke & Associates, APLC
- Robert W. Haley — Danville, Virginia, estate planning, probate and trusts, The Estate & Elder Law Center of Central/Southside Virginia, PLLC
Related reading: What are the duties of a trustee? · Can a trustee be removed? · How do I avoid probate?
This article is general information, not legal advice, and doesn't create an attorney-client relationship. Trust administration rules vary by state and by the trust's terms. Talk to a licensed attorney about your situation.
Sources
Frequently Asked Questions
Does a trust go through probate when the grantor dies?
Assets properly titled in the trust generally don't. The successor trustee transfers them under the trust's terms without a probate case. Assets left outside the trust, such as an account never retitled, may still need probate unless they pass by beneficiary designation or joint ownership.
What does a successor trustee owe the beneficiaries?
Fiduciary duties: loyalty, prudent management, impartiality among beneficiaries, and keeping them reasonably informed. Under the Uniform Trust Code (§ 813) that includes notice and regular reports; California requires an accounting at least annually in most cases (Prob. Code § 16062).
Can beneficiaries challenge a trust after the grantor dies?
Yes, on grounds such as lack of capacity, undue influence, fraud or improper signing. Deadlines can be short. In California, a contest generally must be filed within 120 days after the trustee's notice, or 60 days after a copy of the trust is delivered if that's later (Prob. Code § 16061.8). Other states set their own deadlines, so talk to a lawyer quickly.
Do beneficiaries get a copy of the trust?
Usually, on request. In California, beneficiaries and heirs who receive the trustee's notice can ask for a complete copy of the trust terms (Prob. Code § 16061.7). Uniform Trust Code states give beneficiaries a similar right to request the trust instrument.
Can the trustee sell the house after the grantor dies?
Usually, if the trust gives the trustee power to sell, as most do; the Uniform Trust Code also lists selling trust property among a trustee's default powers (§ 816). The trustee must act prudently and get fair value, and must follow any terms that require beneficiary consent or leave the house to a specific person.
How long does it take to settle a trust?
There's no fixed deadline. Simple trusts holding cash and securities can finish within months; real estate sales, business interests, estate tax returns or disputes can push it past a year.
What happens if a named beneficiary has already died?
The trust document controls. It often sends that share to the beneficiary's descendants (per stirpes) or to the surviving beneficiaries. If the trust is silent, state law fills the gap.
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