You have worked hard to pay for a home, build a retirement plan, and make sound investment choices. If you have created a trust to protect and manage your assets, you may have named yourself as the trustee so you are able to manage your finances. However, if you are no longer able to manage your own finances, it is essential to choose a successor trustee that can take over.
Whether you become incapacitated or after your death, another trustee will need to step in. Since this role is extremely important, the person who fulfills this role should be carefully chosen. The following information will help you understand exactly what a trustee does and how to choose the right person or organization for this position.
What Is a Successor Trustee?
When you create a trust, it is essential to consider the possibility of the primary trustee being unable to carry out their duties due to death or incapacitation. In such situations, a successor trustee steps in to assume responsibility for the trust.
It is best to select a successor trustee when creating the trust to ensure that your wishes are followed. If a trustee dies without a named successor, the court must appoint someone to take over the role, which may not align with your intentions. Therefore, appointing a successor trustee in California is crucial to ensuring your trust is managed as you intended.
What Are the Duties of a Successor Trustee?
The following are some of the duties your trustee is responsible for:
- Take care of general finances: Your trustee will need to take inventory of any assets you have after you die. This could include retirement accounts, life insurance policies, and personal property. They will then pay any outstanding bills you may have and sell assets for any of these expenses.
- Conduct business with beneficiaries: A trustee is responsible for distributing assets among beneficiaries according to the trust terms, keeping beneficiaries informed about any changes to the trust, and handling any disputes that may arise. Depending on the trust, the trustee may also need to manage assets, such as making investments, until all assets are distributed to beneficiaries.
- File taxes: A successor trustee must ensure any taxes regarding your trust are prepared and filed. This means keeping and organizing all necessary records for tax purposes.
- Miscellaneous duties: Depending on the specific trust, a trustee may need to transfer real estate, maintain artwork and jewelry, and in some instances, liquidate assets to pay debts.
The responsibilities of the successor trustee can vary depending on the specific instructions and provisions outlined by the grantor in the trust document. In some cases, the grantor may give the successor trustee broad discretion to make decisions based on their best judgment and the needs of the beneficiaries.
Choosing a Successor Trustee Is Important
You have spent a lifetime working hard to leave behind a secure legacy for your family and loved ones. Choosing a successor trustee is important because a trustee takes on a variety of complex responsibilities.
Selecting a person or institution you trust is a good start but not enough. You need a successor trustee with the skills and experience to protect, manage, and distribute assets. They may need to solve disputes between beneficiaries and be able to interact well with insurance agents, accountants, and other professionals.
There may also be some liability involved as well. A lawsuit may be filed against the trustee for improperly distributing assets, not maintaining accurate accounting records, or not filing taxes promptly.
Because of the complex duties involved, particularly legal issues that may arise, selecting a successor trustee in California is an extremely important decision. Choose a trust lawyer in San Jose with experience to help you.
Contact a Trust Attorney in San Jose, CA
When looking for someone to step in as a successor trustee, you need someone with the experience to handle the legal aspects, compassion, and understanding to work effectively with your beneficiaries. At Keyes Law Group, we have over ten years of legal experience handling estate planning affairs. Our team of professionals will answer your questions and walk you through each step of putting together the trust or modifications you need. When you need a trust attorney in San Jose, CA, contact Keyes Law Group for more information.