A properly established trust does not automatically end when the Settlor dies. Once property has been validly transferred to the Trustee, the Trustee remains its legal owner in the capacity as Trustee.
The Settlor’s death therefore does not, by itself, cause the trust property to fall back into the Settlor’s personal estate. The Trustee continues to administer the property in accordance with the trust deed, including any provisions dealing with distributions or governance after the Settlor’s death.
Example
If family-company shares were validly transferred to a Trustee during the Settlor’s lifetime, the Trustee remains the registered shareholder after the Settlor dies. The trust terms govern the ongoing administration of those shares, subject to applicable law. This continuity is one reason trusts are used for succession planning. The outcome nevertheless depends on the trust having been validly established and the assets having been properly transferred.