Define: Cotrustee

A cotrustee is a person or entity appointed to serve as a trustee alongside one or more other trustees. They share the responsibilities and decision-making authority in managing a trust.

Yes, cotrustees have the authority to act independently in managing the trust, unless the trust document specifies otherwise. However, it is generally advisable for cotrustees to work together and make decisions jointly to avoid conflicts or disputes.

Cotrustees can be appointed in various ways. They may be named in the trust document itself, appointed by a court, or chosen by the original trustee(s) during their lifetime or through a will.

Yes, a cotrustee can be removed under certain circumstances. This may require court intervention or the agreement of all other cotrustees, depending on the specific provisions outlined in the trust document or applicable state laws.

Having cotrustees can provide checks and balances, ensuring that no single trustee has absolute control over the trust assets. It can also bring diverse perspectives and expertise to the decision-making process.

Yes, cotrustees can be held personally liable for any breach of their fiduciary duties or mismanagement of trust assets. It is crucial for cotrustees to act in the best interests of the beneficiaries and fulfil their obligations diligently.

Decisions among cotrustees are typically made by majority vote, unless the trust document specifies otherwise. In some cases, unanimous agreement may be required for certain significant decisions.

Yes, cotrustees are generally entitled to reasonable compensation for their services, unless the trust document explicitly states otherwise. The amount of compensation may vary depending on factors such as the complexity of the trust and the time and effort required.

Yes, a cotrustee can resign from their role by providing written notice to the other trustees and beneficiaries. However, it is important to ensure a smooth transition and avoid leaving the trust without sufficient trustees to manage its affairs.

If a cotrustee becomes incapacitated or passes away, the remaining cotrustees can continue to manage the trust. Alternatively, the trust document may specify a process for appointing a successor trustee or allow for the appointment of a new cotrustee by a court if necessary.