TikTok Trusts, Part III: What Happens After Death—and How Do Trusts Protect Your Heirs?
TikTok Trusts, Part III: What Happens After Death—and How Trusts Protect Your Heirs
In the first two parts of this series, we looked at the basics of trusts and the distinction between grantor and non-grantor structures. In this last and final installment of our TikTok Trusts series, we are going to answer the question, “what actually happens to a trust when someone dies?” Like many things, the answer depends on various factors, but this moment marks a major turning point in the life of the trust.
Start Here - What’s the difference between Revocable vs. Irrevocable?
A revocable living trust is designed for flexibility during the grantor’s lifetime. The grantor (or grantors in the case of a joint trust) can change beneficiaries, move assets in and out, or even revoke (hence the name) the trust entirely. At the grantor’s death, however, that flexibility usually disappears. The trust typically becomes irrevocable, and its instructions are locked in place. From that point on, the successor trustee must carry out the grantor’s plan exactly as written.
By contrast, an irrevocable trust is different from the start. It is designed to be permanent, even while the grantor is alive. This permanence leads to irrevocable trusts often being used for specialized purposes—tax planning, charitable giving, or asset protection. When the grantor of an irrevocable trust dies, the trust doesn’t change form the way a revocable trust does. Instead, it continues on, albeit with a new set of instructions to follow after the death of the grantor.
In both cases, the grantor’s death shifts the focus of the trust from planning to execution: assets are administered, beneficiaries step into their roles, and the successor trustee begins to act as steward of the trust’s property.
what is The Successor Trustee’s Role?
At this stage, the successor trustee becomes the central figure. Their job includes collecting the trust’s assets, paying debts and expenses, filing tax returns, and ultimately ensuring that beneficiaries receive (i) what the grantor intended (ii) when the grantor intended, and (iii) in the way the grantor intended. Unlike probate, which often requires court oversight, a trust can usually be administered privately, providing efficiency and discretion.
How are Beneficiaries Impacted?
For beneficiaries, the experience of inheriting through a trust can vary dramatically depending on how the trust is structured. An outright inheritance—money or property simply transferred into their names—may feel simple, but it exposes those assets to risk. Creditors can claim them, divorce courts can attempt to divide them, and poor financial decisions can quickly erode them.
A continuing trust structure, on the other hand, can provide lasting financial freedom. For example, when parents leave assets to their children in trusts that last the lifetime of the child, those assets are not generally not considered part of the child’s marital estate in the event of a divorce (this varies by state). Creditors cannot simply seize them. Instead, the assets remain under the protection of the trust while still being available for the child’s health, education, or lifestyle needs. This approach not only preserves wealth but can also help ensure that an inheritance will be a blessing, not a burden.
how does a trust allow Asset Protection and Legacy Building?
This concept of asset protection is where irrevocable trusts shine. By placing assets into a structure that is legally separate from the grantor or the beneficiaries, families can build a firewall against lawsuits, divorces, and other financial threats. Parents often use irrevocable trusts to ensure that their children and grandchildren inherit in a way that cannot be easily taken away.
This doesn’t mean beneficiaries lose out on enjoying the inheritance. In fact, it often means they gain access with safeguards. A trustee may distribute funds for education, health care, or even to help a child buy a home—but the underlying trust assets remain protected in the event of a lawsuit, a divorce, or just bad decision-making. It is the difference between leaving someone a pile of cash and leaving them a vault filled with resources that can be suitably used over time.
Why estate Planning Matters?
At its heart, estate planning is about more than just transferring assets—it is about ensuring that the wealth you worked hard to build actually benefits the people you care about. A well-designed trust provides not just efficiency and privacy, but also resilience. It can shield an inheritance from being lost to creditors or broken apart in divorce. It can allow your family to build on your legacy, rather than watch it dissipate.
As we close this three-part series on TikTok Trusts, the key takeaway is that trusts are not “one-size-fits-all” tools. Whether revocable or irrevocable, grantor or non-grantor, their value lies in how they are crafted to reflect your family’s goals, relationships, and risks. Social media may spark the conversation, but only personalized planning can give your family the protection and peace of mind they deserve.
If you’d like to explore how to structure a trust that seeks to safeguards your family’s future, Sequoia Advisor Group is here to help guide the way.
Sequoia Advisor Group and LPL Financial do not provide legal advice or services. This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation. LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.