February 13, 2015

When a trustee becomes incapacitated or passes away, a successor trustee takes their place. In addition to managing the duties held by the previous trustee, the successor must also demonstrate proof of a certificate of trust or affidavit regarding their power over the trust. 

The successor trustee may carry on a range of responsibilities related to the trust, such as:

• Keeping records of income received
• Maintaining records of expenses paid out
• Opening bank accounts, if necessary
• Filing fiduciary tax returns
• Obtaining a tax identification number from the IRS if the successor trustee is taking over after the trustee/grantor of a revocable living trust
• Locating and protecting trust assets
• Acting prudently and impartially
• Creating/providing account reports to beneficiaries, if the trust requires it
• Ensuring compliance with laws and trust terms
• Protecting the confidentiality of trust terms

Selecting a successor trustee may increase the chances that a transition between one trustee and another runs more smoothly. Choose someone you feel confident in handling the above-listed responsibilities. Individuals who are aware of the benefits of the trust and who are skilled with organization may be more likely to succeed. Both the original trustee and the successor trustee should be aware of the value of what they provide to trust management and administration.

To structure your trust properly, you should work directly with an estate planning attorney. This promotes compliance with state and federal laws and the opportunity to maximize your trust benefits with attention to detail- contact us today at info@lawesq.net to review your trust documents.