A trustee is a person or organization appointed to manage the property of another person. When someone creates a trust, they appoint one or more trustees to manage the trust’s property. If the original trustee dies, resigns, or can no longer serve for some other reason, the trust document names a successor trustee to take their place. The successor trustee must follow the instructions in the trust document and manage the trust’s property according to the settlor’s wishes. This article will discuss what you need to know about becoming a successor trustee.
Why a Selecting a Corporate Trustee For Your Revocable Living Trust Makes Sense?
Although you can name an individual as a successor trustee, there are several reasons why selecting a corporate trustee may be a better option. First, a corporate trustee is a professional fiduciary that is experienced in administering trusts. This experience can be invaluable when it comes to managing the assets and distributing them according to the terms of the trust.
Another advantage of selecting a corporate trustee is that it can provide continuity in the administration of the trust. If the named individual successor trustee dies or becomes incapacitated, the corporate trustee will be able to step in and continue administering the trust without any interruption.
Finally, using a corporate trustee can help to avoid potential conflicts among beneficiaries. Beneficiaries who are also named successor trustees may have different ideas about how the trust assets should be managed and distributed. This can lead to disagreements and even litigation. Having a corporate trustee handle these decisions can help to avoid such conflicts.
Choosing a successor trustee is an important decision that should not be made lightly. Consider all of your options and select the option that will best meet your needs and the needs of your beneficiaries.
Who can be a Successor Trustee?
The successor trustee can be anyone the settlor chooses, including a family member, friend, or professional. The successor trustee must be at least 18 years old and must not be bankrupt.
The settlor can also name more than one successor trustee and indicate how the trustees are to act together (jointly or severally). If the settlor names more than one successor trustee, it is advisable to name trustees who live in close proximity to each other so that they can easily communicate and make decisions together.
What Are the Duties of a Successor Trustee?
The duties of a successor trustee are set forth in the trust document. However, generally speaking, the successor trustee’s duties include:
-Managing and investing the trust property
-Paying the trust’s bills and taxes
-Distributing the trust property to the beneficiaries according to the terms of the trust
-Keeping accurate records of all trust transactions
Choosing a successor trustee is an important decision that should not be taken lightly. The settlor should choose someone who is trustworthy and capable of handling the responsibilities of being a trustee. Additionally, the settlor should name more than one successor trustee to serve as co-trustees so that there is always someone available to make decisions and carry out the duties of the trustee if one of the trustees is unable to do so.
If you are considering setting up a trust, it’s important to name a successor trustee who will be able to manage the trust in the event that something happens to the original trustee. For more information on trusts and estate planning, please contact our team today.
If you have any questions about setting up a trust or naming a successor trustee, please contact an experienced estate planning attorney who can help you. The Law Office of Roger A. Giuliani, P.C. has years of experience helping clients with their estate planning needs. We can help you determine whether setting up a trust is the right decision for you and your family, and we can assist you with all aspects of trust administration. Contact us today to schedule a consultation.