Trust situs

[Catherine]

I know we have a couple of folks here with double hats (tax and law), and maybe they have an answer for me.

Trusts created by grandmother fbo grandchildren, in her state, formed under her state's laws and with situs in her state.  No problem so far.  Trustees of trusts live in two other states.  Still no problem.

What happens when grandmother dies?  Are those trusts still sited in her state?  Or does situs automatically move to the states where the trustees live?  Or where the new funds custodian (moved out of grandmother's bank to an investment firm) has principal offices?  Everything I can find online states what is needed is a positive decision by trustees along with 60-day prior notice to beneficiaries.  Nothing automatic.  If that is correct, situs is still grandmother's state unless and until the trustee(s) choose otherwise and so inform beneficiaries.  Yes?  No?  Other?

[kcjenkins]

I think you are correct, it does require both positive action and notification to change it.  

[Catherine]

I think you are correct, it does require both positive action and notification to change it.  

I think the advice of an attorney in the grandmother's state is not out of line here, though.

[kcjenkins]

If the Trust has significant assets, it always makes sense to consult a competent attorney early on.  One tricky issue avoided or prepared for can pay for it many times over.  It always makes me think of the old English saying, "penny wise and pound foolish" how many people try to avoid a modest cost for competent legal advice when any problem can cost them big time.  Just as they often do with tax advice.  

[Catherine]

If the Trust has significant assets, it always makes sense to consult a competent attorney early on.  One tricky issue avoided or prepared for can pay for it many times over.  It always makes me think of the old English saying, "penny wise and pound foolish" how many people try to avoid a modest cost for competent legal advice when any problem can cost them big time.  Just as they often do with tax advice.  

You are right.  Will work on finding an attorney in the current state who works with trusts.  Hmmm... I wonder if the firm that set up the trusts is still around.  First place to start looking, I guess.