--- title: What Happens to a Revocable Trust When a Grantor Dies? description: Trusts are often created to help streamline the transition of assets from one person to another (or group) and avoid probate court. image: https://www.realized1031.com/hubfs/social-suggested-images/concerned-man-computer-paperwork-optimized-is13758612.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - [Wealth Management Gap](https://www.realized1031.com/the-wealth-management-gap) - [Our Process](https://www.realized1031.com/how-realized-works) - [Financial Advisors](https://www.realized1031.com/advisor) - [Resources](https://www.realized1031.com/resources) - [The Company](https://www.realized1031.com/about-us) - [Articles](https://www.realized1031.com/blog) [Register](https://www.realized1031.com/marketplace) [Log In](https://www.realized1031.com/login) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # What Happens to a Revocable Trust When a Grantor Dies? Posted Sep 16, 2023 ![concerned-man-computer-paperwork-optimized-is13758612](https://www.realized1031.com/hs-fs/hubfs/social-suggested-images/concerned-man-computer-paperwork-optimized-is13758612.jpg?width=830&height=553&name=concerned-man-computer-paperwork-optimized-is13758612.jpg) Trusts are often created to help streamline the transition of assets from one person to another (or group) and avoid probate court. Dealing with a death is difficult enough, and probate court doesn’t make the process any easier.  There is still a process when the trust’s grantor dies that any beneficiaries should be aware of. Let’s go through what happens after a trust grantor dies. ### What is a Revocable Trust? A revocable trust is also called a [revocable living trust](https://www.realized1031.com/blog/what-is-a-revocable-living-trust-and-how-does-it-work) since these trusts are generally created when the asset owner is still alive. The owner still owns the assets in the trust and can make changes to the trust. The trust is a legal entity. Upon the death of the owner, ownership of assets is transferred to the beneficiaries. This is unlike an irrevocable trust, which cannot be changed and owns any assets within the trust. ### What is a Grantor? A [grantor](https://www.realized1031.com/glossary/grantor) is the person who created the trust and owns the trust’s assets. This person is called the grantor because the assets will eventually be granted to the trust beneficiaries/heirs. A grantor is also called a trustor. The grantor can be a single person or a married couple. ### What Happens Upon Death of The Grantor? When the trust owner (i.e., grantor) passes, the successor trustee takes over. This is a person or persons named by the grantor. The successor might even be a law firm if the grantor could not find a suitable individual. Upon death, the trust ownership transitions to the named trustee. This person is now responsible for administering the trust. However, that doesn’t mean they fully understand the trust or know how to administer it. Trust can be complex and composed of long legal documents. It’s usually best to hire an attorney to go through the trust to understand what it means. The attorney will also help the trustee figure out the next steps. Before beneficiaries are granted assets, debts should be settled by the trust. The amount owed will depend on how much is claimed by creditors. Note that creditors can still claim assets in a revocable trust. Should this happen, beneficiaries will receive what’s left over. An irrevocable trust is different in that it provides legal protection against creditors. Beneficiaries may decide to sell a house if it is part of the trust. Any proceeds from the sale go to the trust, not the heirs. Proceeds can then be distributed amongst the beneficiaries through the trustee and the trust’s bank account. Trusts should have a separate bank account so money is not co-mingled with beneficiaries/heirs. Depending on the grantor's instructions, assets may be distributed to beneficiaries immediately, over time, or under certain conditions. Sometimes, a revocable trust is set up to go into an irrevocable trust. This can complicate things for beneficiaries, but it all depends on how the trust is set up. Some trusts are straightforward because they have minimal assets and no conditions under which assets are distributed to beneficiaries. However, other trusts are more involved and require assistance from an attorney. This increases the overall expense of administering the trust, decreasing net assets distributed to beneficiaries in the process.   This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation. Hypothetical examples shown are for illustrative purposes only. Learn Ways To Help Build Long-Term Real Estate Wealth [![Get Tips For Managing Real Estate Wealth](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/IPWM-eBook-250c.jpg?width=250&height=250&name=IPWM-eBook-250c.jpg "Learn new ways to use real ...") ](https://www.realized1031.com/blog/what-happens-to-a-revocable-trust-when-a-grantor-dies#blogform) Download eBook ---   --- ### Get Tips For Managing Real Estate Wealth ![Learn Ways To Help Build Long-Term Real Estate Wealth](https://www.realized1031.com/hs-fs/hubfs/Images/UI/graphics/composites/IPWM-eBook-550.jpg?width=550&height=650&name=IPWM-eBook-550.jpg) Learn new ways to use real estate to pursue your wealth goals. By providing your email and phone number, you are opting to receive communications from Realized. If you receive a text message and choose to stop receiving further messages, reply STOP to immediately unsubscribe. Msg & Data rates may apply. To manage receiving emails from Realized visit the Manage Preferences link in any email received. Search ### [Why Realized](https://www.realized1031.com/why-realized) - [Wealth Management](https://www.realized1031.com/the-wealth-management-gap) - [Why Realized](https://www.realized1031.com/why-realized) - [Our Process](https://www.realized1031.com/how-realized-works) - [Scenarios](https://www.realized1031.com/scenarios) - [Private Client Program](https://www.realized1031.com/private-client) - [Realized Exchange Services](https://www.realized1031.com/realized-exchange-services) ### [The Company](https://www.realized1031.com/about-us) - [The Team](https://www.realized1031.com/about-us) - [FAQ](https://www.realized1031.com/frequently-asked-questions) - [Testimonials](https://www.realized1031.com/testimonials) - [Press](https://www.realized1031.com/press) - [Careers](https://www.realized1031.com/careers) ### [Partners](https://www.realized1031.com/partners) - [Financial Advisors](https://www.realized1031.com/advisor) - [Broker Dealers](https://www.realized1031.com/partners/broker-dealers) - [Real Estate Agents](https://www.realized1031.com/partners/real-estate-agents) - [Certified Public Accountants](https://www.realized1031.com/partners/certified-public-accountants) ### [Resources](https://www.realized1031.com/resources) - #### Learn - [Articles](https://www.realized1031.com/blog) - [Glossary of Terms](https://www.realized1031.com/glossary) - [Capital Gains Tax Rates](https://www.realized1031.com/capital-gains-tax-rate) - #### Watch - [Video Library](https://www.realized1031.com/videos) - [Webinar Archive](https://www.realized1031.com/webinars) - #### Read - [Delaware Statutory Trust](https://www.realized1031.com/delaware-statutory-trust) - [Tenants-In-Common](https://www.realized1031.com/tenants-in-common-tic) - [1031 Exchange](https://www.realized1031.com/1031-exchange) - [Qualified Intermediary](https://www.realized1031.com/qualified-intermediary) - [Qualified Opportunity Zones](https://www.realized1031.com/opportunity-zones) #### Realized - 500 W 13th Street Austin, TX 78701 - (877) 797-1031 ##### [Contact Us](https://www.realized1031.com/contact-us) - [![Realized on Facebook](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-facebook-whiterev.png?width=60&height=60&name=social-facebook-whiterev.png)](https://www.facebook.com/Realized/) - [![Realized on LinkedIn](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-linkedin-whiterev.png?width=60&height=60&name=social-linkedin-whiterev.png)](https://www.linkedin.com/company/realized/) - [![Realized on YouTube](https://www.realized1031.com/hs-fs/hubfs/Images/UI/Social/Icons/Mix/social-youtube-whiterev.png?width=60&height=60&name=social-youtube-whiterev.png)](https://www.youtube.com/c/Realized1031?sub_confirmation=1) - [![Realized Holdings, Inc. BBB Business Review](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/bbb/RZH2-bbb-seal.png?width=40&height=65&name=RZH2-bbb-seal.png)](http://www.bbb.org/central-texas/business-reviews/real-estate-investors/realized-holdings-llc-in-austin-tx-1000112948/#bbbonlineclick) - [![FEA Logo](https://www.realized1031.com/hs-fs/hubfs/Images/professional-assoc/fea/RZH2-fea-logo.png?width=82&height=65&name=RZH2-fea-logo.png "FEA Logo")](https://www.1031.org) SECURITIES DISCLOSURE Realized1031.com is a website operated by Realized Technologies, LLC, a wholly owned subsidiary of Realized Holdings, Inc. (“Realized Holdings”). Securities and/or Investment Advisory Services may be offered through Registered Representatives or Investment Advisor Representatives of Realized Financial, Inc. ("Realized"), a broker/dealer, member [FINRA](https://www.finra.org)/[SIPC](https://www.sipc.org/), and registered investment adviser. Realized is a subsidiary of Realized Holdings, Inc. ("Realized Holdings"). Check the background of this firm on [FINRA's BrokerCheck](https://brokercheck.finra.org/firm/summary/22333). Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment. Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested. This site is published for residents of the United States who are accredited investors only. Registered Representatives and Investment Advisor Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all of services referenced on this site are available in every state and through every representative listed. For additional information, please contact the Realized Compliance department at 512-472-7171 or info@realized1031.com. - [Terms & Conditions](https://www.realized1031.com/terms-and-conditions) - [Privacy Policy](https://www.realized1031.com/privacy-policy) - [Form CRS](https://www.realized1031.com/hubfs/common-files/disclosures/FormCRS.pdf) - [ADV 2A](https://www.realized1031.com/hubfs/common-files/disclosures/ADV2A.pdf) - [Reg BI Disclosures](https://www.realized1031.com/hubfs/common-files/disclosures/RegBI.pdf) -   © 2026 Realized Holdings, Inc. ```json { "@context" : "http://schema.org/", "@type" : "BlogPosting", "articleBody" : "Trusts are often created to help streamline the transition of assets from one person to another (or group) and avoid probate court. Dealing with a death is difficult enough, and probate court doesn’t make the process any easier. There is still a process when the trust’s grantor dies that any beneficiaries should be aware of. Let’s go through what happens after a trust grantor dies. What is a Revocable Trust? A revocable trust is also called a revocable living trust since these trusts are generally created when the asset owner is still alive. The owner still owns the assets in the trust and can make changes to the trust. The trust is a legal entity. Upon the death of the owner, ownership of assets is transferred to the beneficiaries. This is unlike an irrevocable trust, which cannot be changed and owns any assets within the trust. What is a Grantor? A grantor is the person who created the trust and owns the trust’s assets. This person is called the grantor because the assets will eventually be granted to the trust beneficiaries/heirs. A grantor is also called a trustor. The grantor can be a single person or a married couple. What Happens Upon Death of The Grantor? When the trust owner (i.e., grantor) passes, the successor trustee takes over. This is a person or persons named by the grantor. The successor might even be a law firm if the grantor could not find a suitable individual. Upon death, the trust ownership transitions to the named trustee. This person is now responsible for administering the trust. However, that doesn’t mean they fully understand the trust or know how to administer it. Trust can be complex and composed of long legal documents. It’s usually best to hire an attorney to go through the trust to understand what it means. The attorney will also help the trustee figure out the next steps. Before beneficiaries are granted assets, debts should be settled by the trust. The amount owed will depend on how much is claimed by creditors. Note that creditors can still claim assets in a revocable trust. Should this happen, beneficiaries will receive what’s left over. An irrevocable trust is different in that it provides legal protection against creditors. Beneficiaries may decide to sell a house if it is part of the trust. Any proceeds from the sale go to the trust, not the heirs. Proceeds can then be distributed amongst the beneficiaries through the trustee and the trust’s bank account. Trusts should have a separate bank account so money is not co-mingled with beneficiaries/heirs. Depending on the grantor's instructions, assets may be distributed to beneficiaries immediately, over time, or under certain conditions. Sometimes, a revocable trust is set up to go into an irrevocable trust. This can complicate things for beneficiaries, but it all depends on how the trust is set up. Some trusts are straightforward because they have minimal assets and no conditions under which assets are distributed to beneficiaries. However, other trusts are more involved and require assistance from an attorney. This increases the overall expense of administering the trust, decreasing net assets distributed to beneficiaries in the process.", "articleSection" : [ "Financial Planning" ], "author" : { "@type" : "Person", "email" : "marketing@realized1031.com", "image" : "", "name" : "The Realized Team", "url" : "https://www.realized1031.com/blog/author/the-realized-team" }, "dateModified" : "2023-09-16T16:00:00+0000", "datePublished" : "2023-09-16T16:00:00+0000", "description" : "Trusts are often created to help streamline the transition of assets from one person to another (or group) and avoid probate court.", "headline" : "What Happens to a Revocable Trust When a Grantor Dies?", "image" : { "@type" : "ImageObject", "height" : 553, "url" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/social-suggested-images/concerned-man-computer-paperwork-optimized-is13758612.jpg", "width" : 830 }, "mainEntityOfPage" : "https://www.realized1031.com/blog/what-happens-to-a-revocable-trust-when-a-grantor-dies", "name" : "What Happens to a Revocable Trust When a Grantor Dies?", "publisher" : { "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "USA", "addressLocality" : "Austin", "addressRegion" : "TX", "postalCode" : "78701", "streetAddress" : "500 W 13th Street " }, "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "http://www.realized1031.com/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black-No-Margin-296x60-AMP.png", "width" : 296 }, "name" : "Realized" }, "thumbnailUrl" : "https://733513.fs1.hubspotusercontent-na1.net/hubfs/733513/social-suggested-images/concerned-man-computer-paperwork-optimized-is13758612.jpg" } ```