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The grantor can serve as the trustee of the trust and manage the assets if they so desire. A third party must act as the trustee. Income from the trust assets is taxed to the grantor at their personal income tax rate. The trust files its own separate tax return and pays taxes at trust tax rates.

A Trustee is a person who acts as a custodian for the assets held within a Trust. He or she is responsible for managing and administering the finances of a Trust per the instructions given. Often, the person who creates the Trust is the Trustee until they can no longer fill the role due to incapacitation or death.

As the Trustor of a trust, once your trust has become irrevocable, you cannot transfer assets into and out of your trust as you wish. Instead, you will need the permission of each of the beneficiaries in the trust to transfer an asset out of the trust.

While a grantor may technically be allowed to serve as the trustee of an irrevocable trust he creates, it is not a good idea at best.

What Happens When the Grantor Dies? When the grantor of an irrevocable trusts dies, the person named successor trustee in the Declaration of Trust assumes control of the trust. The new trustee distributes the assets placed in the trust to the proper beneficiaries.

Yes, once the trust grantor becomes incapacitated or dies, his revocable trust is now irrevocable, meaning that generally the terms of the trust cannot be changed or revoked going forward. This is also true of trusts established by the grantor with the intention that they be irrevocable from the start.