What happens to trust property when a sole trustee dies?

• A. It passes to the grantor
• B. It vests in the court to appoint a successor trustee
• C. It immediately distributes to beneficiaries
• D. The state takes control

Answer: (B)

When a trust needs ongoing administration, a trustee is essential. If the sole trustee dies, the trust doesn’t automatically terminate or send assets to the grantor or the state. Instead, the court steps in to appoint a successor trustee so the trust can continue to be administered per its terms. If the trust instrument already names a successor, that person takes over right away; if not, the court will appoint someone suitable (often a professional trustee) to manage the trust and make distributions according to the trust’s provisions. This preserves the beneficiaries’ interests and maintains orderly administration.