When considering the establishment of a trust, it's essential to understand what happens to it in the event of your incapacitation or passing. A trust is a legal entity created to hold assets for the benefit of one or more beneficiaries. One of the key benefits of a trust is its ability to provide for the management and distribution of assets according to your wishes, even in situations where you may no longer be able to make decisions yourself.

In the unfortunate event that you become incapacitated, the terms of your trust document will typically dictate what happens to the trust assets. Most trusts include provisions for the appointment of a successor trustee who will take over the management of the trust if you are unable to do so. This successor trustee can be an individual, such as a trusted family member or friend, or a corporate trustee, such as a bank or trust company. Their role is to manage the trust assets and make distributions to beneficiaries according to the terms you've outlined.

In the case of incapacitation, the successor trustee steps into your shoes to ensure that your wishes regarding the trust are carried out. They have a fiduciary duty to act in the best interests of the beneficiaries and must follow the instructions laid out in the trust document. This can include managing investments, paying bills, and making distributions for the benefit of beneficiaries, all while adhering to the standards of care and prudence required by law.

If you pass away, the trust typically becomes irrevocable, meaning its terms cannot be changed. The successor trustee continues to manage the trust assets and distribute them to beneficiaries according to your instructions. Depending on the type of trust you've established, distributions may be made outright to beneficiaries or held in trust for their benefit over time. The trustee has a legal obligation to administer the trust in accordance with your wishes and applicable law.

It's important to review and update your trust regularly to ensure it reflects your current circumstances and wishes. Changes in your family situation, financial status, or the law may necessitate updates to your trust document. Consulting with a knowledgeable estate planning attorney can help ensure that your trust is structured in a way that provides for your loved ones and minimizes the potential for disputes or complications in the future.