Trusts are settled when all expenses, taxes, debts and obligations of the trust are paid and the assets in the trust are distributed by the trustee to the beneficiaries. This distribution is made according to the instructions given by the grantor of the trust, regarding what to do in the event of the grantor's death, for example.

If you are a trust beneficiary you should wait to be contacted by the successor trustee, who is responsible for executing the grantor's instructions. How the property will be distributed also depends on whether the assets have to go through probate. Probate is a court-administered process for paying the debts and obligations and then distributing the property with a clear transfer of title. In many cases the assets in a living trust do not have to go through probate.

If you are a family member, you may know the trustee and can keep yourself informed on the status of the distribution of trust assets. You could also consult with your attorney if you have any questions about the status and process of distribution.

Beneficiaries under the age of majority
Minor children who are beneficiaries of a trust will normally require a guardian to watch over their financial interests. Financial institutions will not pay benefits directly to minors or give them access to investment accounts. State laws generally require that a guardianship be appointed to oversee the personal affairs of minors until they reach the age of majority, typically age 18.

According to attorney Patricia Leong, you can only name a guardian for your children in a legal will. If you do not name one, and the other parent is not living, a court will appoint the guardian. You can name two guardians for your child: guardian of the person, who is to have physical custody of your child, and guardian of the estate, who will be investing and managing the money you leave for your child. You can name the same person for both or two different people.

You could also set up the trust so that funds for your minor children continue to be held in the trust. The funds would continue to be managed by the trustee until the minor reaches legal age or any other age you specify. The funds can also be specifically earmarked for certain expenses, such as education, with the balance turned over to the child after college graduation.

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