Being named as a successor trustee in someone’s revocable living trust document can be considered a great honor. But with that honor comes responsibility. Whether you were appointed to this role due to someone’s death or incapacity, we are here to assist you with understanding your role in the trust administration process and to offer you support each step of the way.
A revocable living trust (RLT) is a formal relationship in which the trustmaker names a trusted individual (a trustee) to hold and manage accounts and property for the trustmaker’s benefit and the benefit of others (beneficiaries). When people talk about a trust, they are usually referring to the legal document that puts this relationship in writing. This document is effective during the trustmaker’s lifetime, during any period of disability, and after death. Because the trust is created during the trustmaker’s lifetime, it is referred to as a “living” document, and because the trustmaker can change or terminate it at any time, it is called “revocable.”
A trustee is the person or entity responsible for managing, investing, and handing out the money and property owned by the trust. When a revocable living trust is created, the trustmaker is usually named as the initial trustee. This allows the trustmaker to maintain the same amount of control over and enjoyment of the trustmaker’s accounts and property as the trustmaker had before the trust was created, just in a different role.
A successor trustee is a person or entity that has been named by the trustmaker to take over as trustee when the trustmaker can no longer act as trustee, whether due to disability, death, or a voluntary desire to have someone else manage the trust’s accounts and property.
As previously mentioned, a trustee is responsible for managing, investing, and handing out the trust’s accounts and property to the appropriate parties at the appropriate times. There are several responsibilities you may need to carry out when acting as successor trustee:
A trustee also has some important duties that you should be aware of:
Accepting the role of successor trustee can seem a little intimidating when you look at the job description. However, you are not alone. Your advisor team (trust administration attorney, certified public accountant (CPA), financial advisor, and insurance agent) can guide you through the various steps of the administration process. If you are feeling overwhelmed, you may want to consider delegating trust administration tasks to another person with comparable, more advanced, or specialized skills such as an attorney, CPA, or financial advisor. Also note, services completed on behalf of the trust can be charged to the trust, not to you personally.
If you have questions about your current or future responsibilities as the trustee or successor trustee of your loved one’s trust, give us a call. We can help you navigate the necessary tasks and lend a hand when you are overwhelmed. We are available for in-person or virtual appointments, whichever is more convenient for you.
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