What happens to the trust when a spouse dies?
When one spouse passes away, at that time, the surviving spouse should contact an attorney. You need to inventory all assets so that you know what is in the trust in order to divide the assets into the A trust and the B trust – the survivor’s trust and the family trust. There are tremendous tax benefits associated with the A/B type of trust, which is why we take a snapshot of the assets at the date of death of the spouse.
