Asked in MortgagesEstatesDeeds and Ownership
If a trust is divided upon death of trustee and split into 3 separate trusts and one of the 3 new trustees has already died what happens to that trust?
August 08, 2007 3:15PM
It depends upon the terms of the trust and the state law governing the trust. The trust document may explicitly say what happens when a trustee dies (or cannot server). For example, a specific individual may be named as a successor trustee, or a corporate trustee, or perhaps the current beneficaries may by majority vote appoint a new trustee. Failing that the appropriate court could appoint a successor trustee.
But you should seek legal counsel.