What are the responsibilities of a successor trustee?

What are the responsibilities of a successor trustee?

A Successor Trustee is the person responsible for administering and settling a Trust after the creator (called the Grantor) of the Trust dies. A Successor Trustee is also responsible for the Trust in the event the Grantor becomes incapacitated or unable to make decisions.

What power does a successor trustee have?

A successor trustee is the person or institution that takes control of the trust assets when the original trustee dies, resigns, or becomes incapacitated. A successor trustee’s primary objective is to properly administer the trust assets according to the trust’s terms and in keeping with fiduciary standards.

What is the difference between successor trustee and executor?

A trustee is named under a Trust, and an executor is named under the Will – but both are charged with managing and disposing of assets after death. An executor operates under the supervision of the probate court. A successor trustee is answerable to the beneficiaries of the trust.

Does a successor trustee need a power of attorney?

Answer: You should still have a durable power of attorney for finances. Think of your successor trustee as reigning over a limited kingdom — your living trust, with whatever property you have put into it.

What is the difference between a successor trustee and a trustee?

A trustee, who can either be the trustor or another responsible party, may be appointed while the trustor is still alive; a successor trustee is charged with administering a trust after the trustor or the appointed trustee (if they are different from the trustor) becomes incapacitated or dies.

Are successor trustees beneficiaries?

Can the Successor Trustee Be a Beneficiary of the Trust? It’s perfectly legal to name a beneficiary of the trust (someone who will receive trust property after your death) as successor trustee. In fact, it’s common. When Mildred dies, Allison uses her authority as trustee to transfer the trust property to herself.

Is a successor trustee the same as power of attorney?

The successor trustee usually takes power when the person that created the trust either becomes incapacitated or has died. The Trustee only manages the assets that are owned by the trust, not assets outside the trust. In contrast, a Power of Attorney does not control anything that is owned by your trust.

Can a successor trustee change a living trust?

Can a successor trustee change a trust? Generally, no. Most living or revocable trusts become irrevocable upon the death of the trust’s maker or makers. This means that the trust cannot be altered in any way once the successor trustee takes over management of it.

What is the difference between a trustee and a successor trustee?

Can a Power of Attorney remove a trustee?

In some states, your agent must have both a POA document and a trust agreement allowing them to change a living trust. In other cases, after the POA grants the agent the power to change the trust, the agent can execute a release for the trustee to sign, which allows the agent to access property that’s inside the trust.

What is a second successor trustee?

While you are alive, you remain the trustee of your trust. Another person will act for you when you can’t. That person is called the successor trustee, and you will choose the person when you make the trust. The successor trustee is the bedrock of a well-run trust administration.

What are the responsibilities of a successor trustee of a trust?

A Successor Trustee is almost always named to ensure the Trust will still be managed after the death of the Grantor or initial Trustee. The successor’s responsibilities will be the same as that of the Trustee — though they often have the added task of settling the Trust.

What happens to a trust when the trustee dies?

Once you die, your successor trustee will assume control of the trust and the duties of trustee. Most often, these duties include investing the assets of the trust prudently until the time comes to transfer the assets to the beneficiaries.

How do I obtain authority to serve as trustee of a trust?

Obtain authority to serve as trustee. A. If you are named in the trust as the Successor Trustee, you will need to have evidence of your authority to act as Trustee. The banks, brokerage firms and other third parties will not give you information or allow you to transact business on behalf of the trust until they have these documents.

What are the fiduciary duties of a trustee in California?

C. Determine validity of, contest or pay, and obtain receipt or satisfaction of debts. As Trustee, you have the fiduciary duty to examine each claim to determine its validity. If appropriate, you have a duty to deny payment of a claim and to defend that denial in court.