What happens to an irrevocable trust when the grantor dies?

 

If the creator of an irrevocable trust happens to die, the said trust goes on by the several terms and conditions as evidenced by the trust document. The various assets of the trust remain with the trustee, who is supposed to manage and distribute in accordance with the trust document. In this case, if the grantor was acting as the trustee, another successor trustee named by him would take up the management mantle. These are not to be paid directly to them, but instead, the trustee shall organize these for the beneficiaries to actually receive the distributions or benefits according to the trust, whether those payments commenced during the lifetime of the grantor or are intended to begin after the grantor's death. One Pacific Trust excels in managing such trusts, providing the best services to ensure that your assets are safeguarded and your wishes are precisely carried out.

Since the assets under an irrevocable trust no longer legally belonged to the grantor upon his death, they normally avoid probate. In other words, the assets are not part of the probate process and its delay. Besides that, the assets held in this trust are normally not part of the grantor's taxable estate; therefore, a reduction in estate tax may be realized. The trust acts independently of the grantor's death and enjoys the advantage of stability, whereby clear instructions are in place for the distribution of wealth among the beneficiaries. This setup safeguards one's assets and ensures the distribution based on the grantor's will, without the problems that arise with almost every other traditional method of estate planning.