A successor trustee manages a trust after the death or incapacity of the original trustee. They can sell, transfer, and distribute assets according to the grantor’s instructions but cannot change the details of the trust. The successor can be a friend, relative, or professional, and has the right to refuse. They can begin managing the trust immediately upon the grantor’s death or with a doctor’s certification of incapacity.
A successor trustee is an individual who manages and controls a trust following the death or incapacity of his or her trustee. For example, the person creating a trust, called a grantor, may be its trustee, who manages and controls the trust assets. He can appoint another person as his successor, managing the estate when he is no longer able to do so. While the successor trustee cannot use the trust assets for his own benefit unless he is also a beneficiary of the trust, he can sell, transfer and distribute the assets according to instructions created by the grantor for the trust.
When the settlor of a trust or the original trustee dies or becomes too ill to manage the trust, the successor takes over. This person or organization has many of the same rights as the original grantor or trustee once he takes over. It can make buying and selling decisions for the assets in the trust and can distribute assets and income to the beneficiaries of the trust. This person cannot, however, change the details of the trust after the death of the grantor or original trustee. Once the grantor dies or becomes incapacitated, the trust becomes irrevocable, meaning no one can make any changes to it.
Many people choose a friend or relative they trust to become a probate trustee. Trustees may charge fees for managing trusts, and loved ones may be willing to do it for free. Even if they charge, some people feel that they will act with more care in handling the assets than an unknown party. When a trust contains large sums of money and assets, a grantor may feel more comfortable selecting a firm or professional to manage the trust. This is particularly true where the trust involves investment management, which may require a high level of expertise.
A person has the right to refuse to become a trustee for any reason, including too many other responsibilities. In that case, another person will usually take over the trust. A court may appoint a trustee if an alternate successor is not appointed.
A successor trustee has the right to begin managing the trust immediately upon the death of the grantor. There is usually no wait or reason to get a court involved. If the grantor is incapacitated, however, the successor may need to get a doctor to certify that the grantor is mentally or physically incapable of running the trust.
Protect your devices with Threat Protection by NordVPN
