What should happen to the money in a trust/escrow account after the death of the principal broker?

The correct course of action regarding the money in a trust or escrow account after the death of the principal broker is that the Indiana Real Estate Commission should appoint a successive trustee. This is essential for ensuring that the funds are managed properly and that the interests of the clients remain protected. The continuity of management reflects the importance of trust accounts in real estate transactions, where funds are held for clients—such as earnest money, deposits, or funds related to settlement.

Appointing a successive trustee facilitates the transition and ensures that the obligations under the trust or escrow agreements are fulfilled. This measure maintains the integrity of the trust account and safeguards the clients' funds until a new broker can step in or until the funds can be appropriately disbursed as needed.

In terms of the other options, distributing the money among the staff would violate trust account regulations and fiduciary responsibilities. Returning money to clients immediately might not be feasible or appropriate without a full understanding of the obligations associated with those funds. Closing the firm’s operations may not address the immediate need for proper handling of the escrow account and could leave clients without recourse or access to their funds during the transition.