A Successor Trustee is the person responsible for administering and settling a Trust after the creator (called the Grantor) of the Trust dies. In a Living Trust, the Grantor often serves as the initial Trustee until their death but will eventually need a successor to take over.

What is a Successor Trustee? 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.

Who should I name as successor trustee?

Most people pick an adult son or daughter, other relative or close friend. In most situations, the successor trustee will not need extensive experience in financial management; common sense, dependability and complete honesty are usually enough.

What does a successor trustee do after death?

Your successor trustee is responsible for settling your trust or continuing to manage it for you after your death. The exact duties would depend on the terms you set for your trust in its formation documents. These documents are called the trust agreement.

How is a trust set up in a family?

If the trustor and the beneficiaries of a trust are members of the same family, it is known as a family trust, which can have one trustor or spouses acting as joint trustors. A family trust is set up by a legal document often known as a trust agreement, which usually designates an initial trustee or two or more initial co-trustees.

Who are the beneficiaries of a family trust?

The settlor can also be a trustee. It’s also a good idea to appoint an independent trustee who is not a relative. Professionals like lawyers and accountants (or companies they have set up) often act as independent trustees. Beneficiaries: The people who benefit from the trust, for example members of our family.

When to transfer property from a living trust?

Before you distribute this property in accordance with the trust, check with an accountant or attorney to ensure that you can do so rather than sell the personal property to pay any outstanding debts and taxes. After you’ve distributed the real and personal property, close the trust.