Define: Successor Trustee

A successor trustee is an individual or entity designated to take over the management of a trust if the original trustee is unable to fulfill their duties.

A successor trustee is typically appointed in the trust document itself, where the grantor names a successor trustee to take over in the event of the original trustee’s incapacity or death.

The responsibilities of a successor trustee include managing the trust assets, distributing trust income and principal according to the terms of the trust, and fulfilling any other duties outlined in the trust document.

In some cases, a successor trustee can be removed if there is just cause, such as misconduct or incompetence. This process is typically outlined in the trust document or state law.

If a successor trustee refuses to serve, the trust document may have provisions for appointing a new successor trustee, or the court may need to intervene to appoint a new trustee.

A successor trustee is generally not personally liable for the actions of the original trustee, unless they fail to fulfill their duties as trustee in accordance with the trust document and applicable law.

A successor trustee is typically bound by the terms of the trust document and may only make changes or distributions as outlined in the document or as allowed by law.

The compensation for a successor trustee is typically outlined in the trust document, and if not, state law may provide guidance on reasonable compensation for trustee services.

Yes, a successor trustee can also be a beneficiary of the trust, but they must still fulfill their duties as trustee and act in the best interests of all beneficiaries.

When choosing a successor trustee, it is important to consider their ability to manage trust assets, their willingness to serve, their understanding of the grantor’s wishes, and their ability to work with beneficiaries.