How long does it take to close a trust from beginning to end? Why does it take so long?

November 13, 2020

It can take as little as 2 months or more than 6 months to distribute and close a trust. The time frame depends on the type of trust, the Joinder Agreement instructions, and other factors such as court supervision. Community Fund works actively on wrapping up all items and meeting its legal obligations to the state, the IRS or state taxing authority, and any remainder distributees. If the trust has a Medicaid payback obligation, the state’s final Medicaid claim may not be available until more than 5 months after the Beneficiary’s date of death. In addition, tax payments may need to be calculated and distributed before other distributions are made. Furthermore, Community Fund may be waiting on distribution requests, refund checks, W-9 forms, and approvals from various parties in order to process post-death distributions, returns of unused funds, and remainder distributions.