What kind of a trust is created by the death of a trustor

The death of a trustor typically creates an irrevocable trust. Here's how:

1. Irrevocable Trust Creation: When the grantor (trustor) dies, any revocable trust they established becomes irrevocable. This means the trust cannot be altered or revoked by the surviving grantor's heirs or beneficiaries.
2. Successor Trustees Appointed: The trust document usually designates a successor trustee to manage the trust assets after the grantor's death. This individual assumes the role of trustee and is responsible for administering the trust according to its terms.
3. Trust Administration: The successor trustee must oversee the trust's administration, including managing the trust assets, distributing income and principal to beneficiaries, and handling any tax reporting requirements.
4. Tax Implications: The tax treatment of the trust after the grantor's death depends on various factors, including the type of trust, its assets, and the beneficiaries. For instance, grantor trusts may have specific tax implications at the grantor's death, such as the inclusion of trust assets in the grantor's estate for estate tax purposes.
5. Beneficiary Distribution: The trust's beneficiaries, typically named in the trust document, receive the trust assets according to the trust's distribution provisions. This can include outright distribution, lifetime income, or contingent distribution based on certain events.

In summary, the death of a trustor transforms a revocable trust into an irrevocable trust, with the trust assets managed by a successor trustee until distributed to the beneficiaries as outlined in the trust document.