The question of who manages a trust after the grantor’s death is a critical one, and the answer lies within the trust document itself.
What is a successor trustee and what do they do?
Typically, a trust designates a successor trustee to take over management upon the death of the original trustee (often the person who created the trust). This successor trustee has a fiduciary duty to administer the trust according to its terms, which means acting in the best interests of the beneficiaries. They are responsible for tasks like managing assets, paying debts and taxes, distributing income, and ultimately distributing the principal as outlined in the trust document. According to a recent study by the American Association of Retirement Investment Advisors, approximately 65% of individuals with significant assets utilize trusts to manage their wealth transfer, highlighting the importance of understanding this succession process. A well-drafted trust meticulously details these responsibilities, minimizing ambiguity and potential disputes.
How is a successor trustee selected?
The selection of a successor trustee is a vital decision, and it’s not something to take lightly. Grantors often choose family members, trusted friends, or professional trustees like attorneys or trust companies. Each option has its pros and cons. A family member might be familiar with the grantor’s wishes, but may lack the financial expertise or objectivity. A professional trustee brings experience and impartiality, but comes with fees. Steve Bliss, as an experienced estate planning attorney, often advises clients to consider a co-trustee arrangement – combining a family member with a professional – to balance familiarity and expertise. According to the National Center for Philanthropy, trusts managed by professional trustees tend to have higher rates of compliance with complex tax regulations.
What happens if my trust doesn’t name a successor trustee?
This is where things can get complicated, and unfortunately, I’ve seen it happen more than once. I remember Mrs. Davison, a lovely woman who meticulously planned her estate but overlooked specifying a successor trustee in her trust. After her passing, her children spent months entangled in probate court, fighting over who should manage the trust assets. Legal fees piled up, family relationships strained, and the distribution of assets was significantly delayed. In such scenarios, a court will appoint an administrator, often based on state laws of intestacy, which might not align with the grantor’s wishes. This process is far more costly and time-consuming than a smooth transition guided by a named successor trustee – the added cost can range from 5% to 10% of the trust assets. It’s a stark reminder that even the most comprehensive estate plan is only as effective as its attention to detail.
Can I change who is in charge of the trust after I create it?
Absolutely! One of the significant advantages of a revocable living trust is its flexibility. As long as you have the mental capacity, you can amend or revoke the trust at any time, including changing the successor trustee. I had a client, Mr. Henderson, who initially named his eldest son as successor trustee, assuming he would handle the financial aspects responsibly. Years later, as his son’s business ventures became increasingly erratic, Mr. Henderson wisely decided to amend his trust, naming a trusted financial advisor as co-trustee. This proactive change ensured that his beneficiaries would receive their inheritance according to his wishes, even if unforeseen circumstances arose. It’s like having a safety net—you can adjust the plan as life evolves. According to a recent survey by Wealth Management Magazine, over 40% of individuals with trusts have amended their documents at least once to reflect changing family dynamics or financial situations. This demonstrates the importance of regular review and updates with a qualified estate planning attorney.
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
- living trust
- revocable living trust
- irrevocable trust
- family trust
- wills and trusts
- wills
- estate planning
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “What’s the difference between an heir and a beneficiary?” Or “What if I live in a different state than where the deceased person lived—does probate still apply?” or “What professionals should I consult when creating a trust? and even: “Can I include back taxes in a bankruptcy filing?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.