Do the interests that are transferred into a trust, and therefore to the trustee, carry over to a successor trustee when the original trustee dies? Or does the law see the interest held by the trustee to be in effect held by the trust for the purposes of provisions in an agreement relating to the death of a partner?
2 Answers from Attorneys
The trust is the actual and legal owner of the property transferred into the trust, and the trustee, or successor trustee holds only power to transfer title to property according to the provisions of the trust.
The Trust is the owner, and the trustee only its representative. You need to look closely at your partnership agreement, however, to determine the impact of the change of trustee or the death of a trust grantor. Most well drafted partnership agreements address these issues specifically.