Your friend or loved one has written their revocable living trust \u2014 and they just named you as their Successor Trustee or Alternate Successor Trustee. We\u2019ve prepared this short overview to help you understand what this means and answer some common questions.<\/p>\n\n\n\n
(Note that if you were named as an Alternate Successor Trustee, then you will be asked to serve only if the person named as first-choice Successor Trustee is unable or unwilling to serve.)<\/p>\n\n\n\n
Like a will, a revocable living trust is an estate planning tool that provides instructions about how the trust\u2019s creator (known as the \u201cGrantor\u201d) wishes to distribute certain property after they\u2019ve passed away. A living trust holds property that the Grantor has placed in it, and is managed at first by the initial \u201cTrustee,\u201d who is typically the Grantor.<\/p>\n\n\n\n
A Successor Trustee is the person responsible for administering the trust after its Grantor either passes away or becomes \u201cIncapacitated\u201d \u2013 that is, unable to administer the trust for themselves. The Grantor\u2019s instructions for how the trust should be administered are set out in a document called a \u201cDeclaration of Trust.\u201d The Declaration of Trust will also describe the Successor Trustee\u2019s responsibilities and powers.<\/p>\n\n\n\n
A Successor Trustee\u2019s specific duties depend on the terms of the Declaration of Trust, local law, and whether the Grantor has passed away or is Incapacitated but still living. A general overview of typical Successor Trustee duties is provided below. Please note, however, that it is usually wise to speak with an estate planning attorney for assistance to learn exactly what will be required in your specific case. (Successor Trustees are entitled to reimbursement from the trust for the reasonable costs and expenses they incur in the course of their duties, and this typically includes the cost of necessary legal advice.)<\/p>\n\n\n\n
It is important to note that Successor Trustee are obligated to administer the trust and exercise their powers for the benefit of the trust\u2019s beneficiaries. Successor Trustees may not act for their own personal benefit unless the Declaration of Trust specifically authorizes it.<\/p>\n\n\n\n
When the Grantor has passed away, the Successor Trustee is typically responsible for winding down the trust by distributing the property it holds in accordance with the Grantor\u2019s instructions. Until all distributions have been completed, the Successor Trustee is also responsible for administering the trust property in a way that protects the trust property from waste and loss.<\/p>\n\n\n\nGOT QUESTIONS… JUST CLICK HERE!<\/a>