Distribution is the last step in the estate administration process. What must be done varies greatly and depends on the language in the trust document. Normally, but not necessarily, the following needs to be done:

Single Trust: The trust terminates and the assets are distributed to the beneficiaries. Sometimes, all or part of the assets remain under the control of the trustee and are not distributed to the beneficiaries because the beneficiary is a minor, spendthrift, has a drug or alcohol problem, or has a substantial estate of his or her own and any trust distribution would cause a tax problem.

Simple Trust at Death of a First Spouse: The trust does not terminate and the surviving spouse retains control and benefit of all trust assets. No distribution is actually made. The surviving spouse merely removes the deceased spouse's name from all of the assets. Once completed, the trust basically becomes a single trust.

If the estate exceeds the estate tax exemption or could exceed the estate tax exemption in the future, make sure to discuss the option of disclaiming assets with your attorney. A disclaimer must be done within nine months of the date of death of the first spouse and before the surviving spouse takes control of the trust assets.

AB, Disclaimer, Individual QTIP Trusts at Death of First Spouse: The living trust terminates and distributes two new trusts, Trust A and Trust B. The deceased spouse's name is removed from all of the assets, and all of the remaining assets are re-titled as “(Surviving Spouse) as trustee of the (Last Name) Trust dated (date), sub-trust A” or “(Surviving Spouse) as trustee of the (Last Name) Trust dated (date), sub-trust B.” Trust A uses the surviving spouse’s social security number, and Trust B uses a new tax payer identification number.

Trust A receives all of the surviving spouse's assets, plus one half of the trust assets. Trust B receives the deceased spouse's assets plus one half of the trust assets up to the federal estate tax exemption.

ABC/QTIP Trust at Death of First Spouse: The living trust terminates and distributes three new trusts, Trust A, Trust B and Trust C. The deceased spouse's name is removed from all of the assets, and all of the remaining assets are re-titled as “(Surviving Spouse) as trustee of the (Last Name) Trust dated (date), sub-trust A” or “(Surviving Spouse) as trustee of the (Last Name) Trust dated (date), sub-trust B” or “(Surviving Spouse) as trustee of the (Last Name) Trust dated (date), sub-trust C.” Trust A uses the surviving spouse’s social security number, Trusts B and C use new tax payer identification numbers.

Trust A receives all of the surviving spouse's assets, plus one half of the trust assets. Trust B receives the deceased spouse's assets plus one half of the trust assets up to the federal estate tax exemption. Trust C receives the deceased spouse’s excess, if any.

QDOT Trust at Death of First Spouse: The living trust terminates and distributes three new trusts, Trust A, Trust B and Trust C. Trust C has a trustee other than the surviving spouse or an additional trustee with the surviving spouse.

The deceased spouse's name is removed from all of the assets, and all of the remaining assets are re-titled as “(Surviving Spouse) as trustee of the (Last Name) Trust dated (date), sub-trust A” or “(Surviving Spouse) as trustee of the (Last Name) Trust dated (date), sub-trust B” or “(Surviving Spouse) as trustee of the (Last Name) Trust dated (date), sub-trust C.” Trust A uses the surviving spouse’s social security number, Trusts B and C use new tax payer identification numbers.

Trust A receives all of the surviving spouse's assets, plus one half of the trust assets. Trust B receives the deceased spouse's assets plus one half of the trust assets up to the federal estate tax exemption. Trust C receives the deceased spouse’s excess, if any.