You have no say regarding when this process takes place. With a trustee, there is a much larger variance in how long the job lasts. You can specify as much in your trust. Irrevocable trusts can have successor trustees, but the term has a slightly different usage.
You must choose someone else to serve as your trustee. If your original trustee either dies or becomes incapacitates, you can name a successor trustee to replace the original. The successor trustee has the exact same duties and powers as the original trustee. Serving as a trustee is a big job that can take time and energy. In some situations, it can even last for years. If you are creating a living trust and choosing who to appoint as successor trustee, make sure you choose someone who is competent, trustworthy and healthy.
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They are a must-read. If you like what you see, be sure to scroll down and subscribe. Home Trustee. What if the terms of a trust are unclear? As the trustee of the trust , what steps should you take to obtain clarification about what they mean? What if the deceased grantor provided for a large share of their trust to go to a stranger?
As the successor trustee, is it your responsibility to litigate if you believe the grantor to have been a victim of financial abuse? What if certain assets listed on the trust document are nowhere to be found? What is a Trustee? Section 1. Trustee vs. Executor Section 2. Duties of Trustees Section 3. Powers of Trustees Section 4. Trustor vs. Successor Trustee When executing a new trust, the creator of the trust i. Co-Trustees When multiple parties are designated as the trustees of a trust , they are called co-trustees.
Co-trustees must always remember: The trust may provide for each co-trustee to have different powers. Unless authorized by the trust, co-trustees must never make unilateral decisions about the trust; before they move forward with any decision, they must inform the other co-trustees and obtain their consent. The difference between a trustee of a trust and the executor of an estate is relatively straightforward: Whereas trustees provide services related to trusts e.
Duties of Trustees. What Does a Trustee Do? Some of the other duties of trustees include:. A duty of loyalty to beneficiaries — i.
Powers of Trustees. What Is a Trustee Permitted to Do? Some of the powers of trustees can include:. Purchasing property for the trust using trust assets Selling trust property unless the terms of the trust forbid the sale of certain property Hiring third-party professionals using trust funds to assist with administration duties Making distributions to beneficiaries Withholding distributions to certain beneficiaries if there is a valid reason for doing so Making investments on behalf of the trust Receiving compensation for the time and effort they spend managing the trust Refusing appointment as trustee or stepping down after being appointed.
Commingle trust assets with any other assets e. Are Trustees Entitled to Compensation? Trustees should remember the following when preparing accountings:. Unless the trust provides otherwise, it is not an option for trustees to provide accountings to beneficiaries; it is a requirement.
Beneficiaries can request informal or formal accountings from trustees from time to time. Accountings should include information like trust expenses, trust income, trustee compensation, property held by the trust and the value of said property Trustees are usually required to provide the beneficiaries with a formal accounting once a year.
Accountings can be challenged, so it is important to prepare them with help from a trustee attorney. Were You Appointed Trustee of a Trust?
Keystone offers a comprehensive selection of trustee services. They include:. Instances in which the trustee should consider getting involved include, but are not limited to, the following: If litigation is brought against the trust e.
Trustee attorneys can assist trustees with: Defending a trust contest on behalf of the trust Determining whether or not to participate in the trust contest. Learn More. Free Consulation. Related Articles. Smith v. Szeyller: Beneficiary Freeloaders Beware. A successor trustee is a new trustee who replaces a previous trustee, while a co-trustee is a trustee that serves at the same time as another trustee.
A trust is a formal legal relationship created for the ownership and management of property. Trusts are common tools in an estate planning tool belt. Trusts often work hand in hand with wills for the distribution of property to heirs. Each trust agreement is managed by a trustee or co-trustees who follow the trust agreement instructions relating to all property in the trust.
If the trustee dies or no longer desires to serve, then the trust agreement will provide a procedure for appointment a successor, or replacement, trustee. A trust deed is a legal document used in connection with mortgage loans.
The trust deed is the document that gives the mortgage lender a mortgage lien on the borrower's property. For example, if you take out a mortgage loan on your house, you will sign a trust deed granting the lender a lien on your house.
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