What happens to a living trust when the beneficiaries die?
A living trust is a document that is part of an estate plan. Under a living trust, a person (the grantor) places property in trust for the benefit of one or more other people (the beneficiaries).TypesA living trust can either be revocable or irrevocable. A revocable trust is one that the grantor retains control over, meaning that he can take back the property or change the beneficiaries at any time. An irrevocable trust is one that cannot be changed once it is signed by the grantor.BenefitsTypically, an irrevocable living trust is used to avoid probate and estate taxes. Once property is placed in an irrevocable trust, it is no longer part of the grantor’s estate and is not subject to estate taxes. A revocable trust, on the other hand, is still the property of the grantor and does not avoid estate taxes.ConsiderationsWhen setting up a living trust, careful consideration must be given to the beneficiaries. The trust should address what will happen when the beneficiaries die. Also, if use
