What Is an Ineffective Successor Trustee?
A Successor Trustee is named to step in and manage the trust when the Trustee is no longer able to continue (usually due to incapacity or death). Typically, several are named in succession in case one or more cannot act.
There are certain roles that a Successor Trustee is tasked with to ensure that the decedent’s wishes are met.
Here is what to look for to ensure your loved ones wishes are being held to the highest standard:
- The Successor Trustee must follow the directives in the trust.
- The Successor Trustee cannot co-mingle trust assets with their own assets.
- A Successor Trustee must keep a separate checking account and investments.
- The Successor Trustee cannot use trust assets for their benefit (unless the trust authorizes it).
- The Successor Trustee must treat trust beneficiaries the same; and cannot favor one over another (unless the trust says you can).
- Trust assets must be invested in a prudent (conservative) manner that will result in reasonable growth with minimum risk.
- The Successor Trustee is responsible for keeping accurate records, filing tax returns and reporting to the beneficiaries as the trust requires.
Do you believe that you have or had a loved one that has a successor trustee that is not acting in the best interest in your loved one or following his or her perspective final wishes?
If you would like a consultation to review your loved one’s Will or Trust to ensure such that the requests of your loved ones are being fulfilled properly and ethically at their time of death. Contact us at Beyer, Pongratz & Rosen, a Professional Law Corporation, and bring the peace back into your life.