Is a successor trustee the same as a trustee?
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Is a successor trustee the same as 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.
What is the difference between a beneficiary and a successor trustee?
You also need to understand that there is a distinction to be made between who inherits a trust when someone dies (the beneficiaries) and who shall have the responsibility of administering the trust, paying the bills and taxes, and distributing what’s left to the beneficiaries (the successor trustees).
What is a successor trustee of an estate?
A Successor Trustee is the person responsible for administering the trust after its Grantor either passes away or becomes “Incapacitated” – that is, unable to administer the trust for themselves.
How do you name a successor trustee?
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. EXAMPLE: Mildred names her only child, Allison, as both sole beneficiary of her living trust and successor trustee of the living trust.
What does it mean to be successor trustee?
Successor Trustee is the person or institution who takes over the management of a living trust property when the original trustee has died or become incapacitated. The exact responsibilities of a successor trustee will vary depending on the instructions left by the creator of the trust (called the Grantor).
Can a successor trustee change the terms of the trust?
Generally, a successor trustee cannot change or amend a trust. Most trusts are initially managed by their creator or original trustee, while they are still alive and competent. But after their passing, a successor trustee must step in to take legal title to assets and administer the trust according to its terms.
Is a successor trustee also a beneficiary?
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.
Should spouse be a successor trustee?
The successor trustee may be the primary beneficiary of the trust. However, the successor trustee can be anyone you trust. For example, the successor trustee can be a close friend, an adult child, your spouse, your lawyer, an accountant, or a corporate trustee.
What is the difference between executor and successor trustee?
An executor operates under the supervision of the probate court. A successor trustee is answerable to the beneficiaries of the trust.
