How to Close a Revocable Living Trust After Death in Tennessee

Many people may not know how to close a revocable living trust after death in Tennessee. When a person who created a revocable living trust passes away, the trust typically becomes irrevocable and must be closed. In Tennessee, this responsibility falls to the trustee or successor trustee, who is tasked with carrying out the final instructions outlined in the trust.

Closing the trust often involves several important steps: identifying and valuing trust assets, settling outstanding debts and final taxes, and distributing property to beneficiaries.

Trustees must also provide accurate records, keep beneficiaries informed, and ensure all legal requirements are met before formally dissolving the trust. Understanding these responsibilities can help make the process smoother, reduce the risk of disputes, and provide peace of mind for everyone involved.

Hire a Trust Lawyer

At Emmack Probate and Estate Law Group, clients receive guidance rooted in years of experience handling trusts and estate matters in Tennessee. With an experienced trust lawyer at your side, you gain practical counsel tailored to your goals. A recent poll of over 2,500 adults in the U.S. found that approximately 13% of respondents have a living trust. Our firm is dedicated to providing clear explanations and practical steps for families navigating complex legal processes, including closing a revocable living trust after death.

With a client-focused approach, we combine legal knowledge with compassion, ensuring each trust is administered properly and in compliance with state requirements while protecting beneficiaries’ interests.

Identifying and Managing Trust Assets

The first thing you should do when closing a revocable living trust upon death is to determine all of the assets in the trust. This would include real property, bank accounts, investments, and any other personal property that was titled in the name of the trust during the grantor’s lifetime. As the trustee, you will be responsible for taking an inventory of these assets, valuing them, and administering them until they are distributed to the appropriate beneficiaries.

Keep good records and take your time so as to avoid confusion and to make the process as transparent as possible. Obtaining deeds, account statements, and any other necessary documentation will make the administration process go smoothly.

Notifying Beneficiaries and Settling Debts

Communication is another important duty of the trustee. In most cases, beneficiaries should be informed of the trust administration, as they have a right to reasonable updates. In addition, the trustee is responsible for locating and paying any debts and expenses owed by the deceased, including funeral and medical expenses, and final taxes.

Tennessee law requires that these payments be made prior to distributions. Settling the estate’s debts not only avoids legal issues but also ensures that distributions are made equitably to all beneficiaries. Ongoing communication with beneficiaries can also help ensure a smoother administration by preventing mistrust and disagreements.

Distributing Assets and Closing the Trust

After the assets have been accounted for and the debts have been paid, the trustee can distribute the property to the beneficiaries if that is the trust’s directive. The trustee may need to transfer the title of a piece of real estate, disburse money from an account, or allocate personal property.

The trustee should provide an accounting for the trust to the beneficiaries, showing how the assets were managed and distributed. Once all administrative responsibilities have been completed, the trust can be closed and distributions finalized.

Preparing a Final Accounting and Documentation

It’s a good idea to create a final accounting before formally closing a revocable living trust. A final accounting shows all the income the trust has received, expenses and debts paid, and any distributions to beneficiaries. Beneficiaries usually have a right to see this information. They’ll appreciate your transparency, and it can help avoid disputes.

In Tennessee, good records are important to show that you performed your duties as a trustee. They can also help protect you if questions come up in the future. After the accounting is approved and all work is done, you can formally close the trust.

FAQs

What Happens to a Revocable Living Trust After Death in Tennessee?

In Tennessee, a revocable living trust is irrevocable upon the death of the person who created it, and cannot be changed or modified. After a grantor’s death, the trustee has a fiduciary duty to administer the trust by identifying its assets, paying debts, filing taxes, and making distributions to beneficiaries in accordance with the terms of the trust.

In order to avoid probate, the trust must have been funded with the grantor’s assets while they were still alive.

Who Is Responsible for Closing a Revocable Living Trust?

Closing a revocable living trust is the responsibility of the trustee or successor trustee named in the trust agreement. The trustee takes over the administration of trust assets when the grantor dies, paying expenses and distributing the remaining assets to the trust beneficiaries.

Trustees are bound by Tennessee law and their trust agreement to keep records and act in the interests of the beneficiaries. The trustee must close the trust in accordance with their fiduciary duties, carefully and completely.

Do Beneficiaries Need to Be Notified About the Trust?

Yes, the beneficiaries should be notified about the trust once the grantor has died. In Tennessee, the trustee is obligated to give beneficiaries information about the trust, such as where the trust assets are located and how the administration will be handled. Keeping beneficiaries informed about how the trust is managed fulfills a key trustee responsibility and helps prevent disputes, which promotes an organized and respectful process for all parties.

Are Debts Paid Before Assets Are Distributed From a Trust?

Yes, debts are paid before assets are distributed from a trust. In Tennessee, it’s important for the trustee to make sure there are no outstanding claims against the estate and that all existing claims are valid. Final medical bills, funeral expenses, and taxes need to be paid before any remaining trust assets are distributed to beneficiaries.

Contact a Trust Lawyer

Closing a revocable living trust requires care and compliance with Tennessee law. At Emmack Probate and Estate Law Group, families receive guidance that simplifies the process and protects beneficiaries. If you need help administering or closing a trust, schedule a consultation today to discuss your situation and explore your legal options.