Distributions and closing a trust

Distributing early is the mistake that cannot be undone. Closing properly is what releases the trustee.

Property should not leave the trust until the debts, taxes and claims against it are settled and the beneficiaries have had what they are owed by way of information. A trustee who distributes early can be personally liable for what is then missing.

Closing is a document and a release, not simply the last check. Done properly it ends the trustee's exposure rather than leaving it open.