Trust Conditions

• The trust agreement may contain conditions pertaining to what should occur upon the death of the trust owner (settlor). The terms and provisions contained in a written trust agreement govern what happens to the trust upon the settlor's death. However, unless the trust agreement specifically and unambiguously states that the trust must terminate upon the settlor's death, the trust will continue to operate after the settlor's death.
  
  

Trust Property

• The trust agreement may contain instructions regarding the distribution of property from the trust after the settlor's death. The distribution may be a single, lump sum distribution to occur immediately upon the settlor's death, but more likely will involve periodic disbursements to one or more trust beneficiaries. The trust property will otherwise remain unaffected by the settlor's death.
  
  

Successor Trustee

• It is common for the trust settlor to name herself as the first trustee of the trust. The trustee is the person who manages the trust property, distributes the trust property and generally follows the trust agreement instructions. If the settlor is also the trustee then a new trustee will need to be appointed after the settlor/trustee's death. Trust agreements often include instructions for how to appoint a successor trustee. When this isn't the case, any beneficiary can request that a state court judge appoint a successor trustee.
  
  

Pour-over Will

• A common estate planning tool that works in partnership with a trust is the pour-over will. A pour-over will is a last will and testament that essentially grants all of the deceased person's property to the trust. The property poured over from the will then becomes a part of the general trust property, subject to management and disbursement by the trustee according to the trust instructions. So, if the deceased owner of the trust had a pour-over will, the trust will likely experience growth in the trust property.