What Happens to a Special Needs Trust When a Child Dies? | NC

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Q: What happens to a special needs trust when the minor beneficiary passes away? A: The child’s death usually ends the trust if the document says the trust terminates at death or if no trust purpose remains. However, the trustee should not immediately distribute the assets. First, the trustee must review the trust terms, the source of the funds, and any court or benefits records. If the trust…