If one-third of the trust assets go to Beneficiary A, for example, she may simply transfer title to a trust-owned house if its value is appropriate, or sell the house and distribute the proceeds to the beneficiaries.
A living trust, in contrast with a testamentary trust, comes into existence while you are still alive.
Pennsylvania's trust law is based on the Pennsylvania Uniform Trust Act.
The trustee will also need to collect any debts owed to the trust.
Before the trustee distributes remaining trust assets to your beneficiaries, she needs to create a distribution plan that conforms to the terms set out in the trust document.
If the trust owns a house, for example, the mortgage normally must be paid off before any distributions to trust beneficiaries, even if this requires the sale of the house.
If the trust was created under your will, state governments generally require the executor to issue public notice of the probate of the estate -- through a newspaper ad, for example -- and allow creditors a statutory period of several weeks to make claims against assets.
The person in charge of distributing assets held in a living trust to the trust beneficiaries is called the trustee.
The process of distributing the trust property is a bit more involved than simply handing property over to the beneficiaries.
Only then can the trustee distribute the trust property.
A living trust allows you to place assets under the care of a trustee who then distributes them to your beneficiaries in accordance with your wishes.