What happens if a trustee dies?
If you are asking "What happens if a Trustee dies?", this guide sets out what typically follows and how a Trust continues to be managed. It explains how Trustees can be replaced, how the Trust is affected, and the powers of those who remain.
How to replace a Trustee
If one Trustee dies and others remain, the surviving Trustees normally have the power to appoint a replacement. This is usually done by following the Trust deed’s instructions or via section 36 of the Trustee Act 1925, which allows new Trustees to be appointed when another passes away, is unfit, or refuses to act. That way, the Trust continues without interruption.
If there are no surviving Trustees, the Personal Representatives (PRs) – either Executors or Administrators - of the last Trustee can appoint new ones. In some cases, a beneficiary with capacity may even be appointed, depending on the Trust’s terms. If necessary, the Court may also be asked to appoint a Trustee directly.
Impact on the estate and Trust administration
The death of a Trustee does not invalidate the Trust or halt its operation. Any remaining Trustee(s) automatically step up to carry on responsibilities unless the Trust deed specifies otherwise. If the deceased Trustee held property under the Trust, that interest transfers to the remaining Trustees, who continue to manage Trust assets.
The Trust remains in force and distributions, investments, or income payments continue according to the terms set out in the Will or Trust document.
Powers of the remaining Trustees
Remaining Trustees retain full authority to manage Trust assets in line with the Trust deed and Trustee Act rules. That includes responsibilities such as:
- Managing or investing assets;
- Selling or maintaining property held by the Trust;
- Distributing capital or income to beneficiaries as specified in the Trust terms;
- Delegating administrative tasks to professionals if permitted by the Trust deed
Practical steps when a Trustee dies
- Check the Trust deed for any instructions about Trustee succession.
- If there are surviving Trustees, they should agree on a replacement.
- If no Trustees remain, the PRs of the last Trustee can act to appoint replacements.
- If there is no alternative route, beneficiaries or an interested party may apply to the Court for a Trustee appointment.
- Once appointed, ensure the new Trustee signs any vesting deed or legal declaration required, so the Trust property is properly held in Trust.
Final thoughts
So, what happens if a Trustee dies? Provided at least one Trustee remains, the Trust continues uninterrupted, and replacements can be appointed either by surviving Trustees or PRs. If no one remains, the court or beneficiaries may need to step in. The key goal is that Trust assets continue to be managed properly and beneficiaries’ interests remain protected.