What Is a Successor Trustee?

Were you recently named a successor trustee? If so, this means that you are not the primary trustee working with an estate, but the back-up in case the first chosen trustee falls ill, passes away, or is otherwise unable to perform the duti4es expected. Normally, an estate planner will appoint at least one successor trustee to make sure that someone that he or she trusts will be managing his or her will when it is time to divvy up the assets. Sometimes, two or more adult children are named to act together, a corporate trustee may be named as the successor trustee or a professional financial consultant may take up this role.

Should you become the trustee through succession, you will need to safeguard all assets from the grantor or the beneficiaries. You will be required to keep all trust assets separate from your own personal assets. While you may have authority over accounts as a trustee, it is important to remember that the beneficiaries are the ones with a claim to the finances. You are merely responsible to facilitate that transfer of assets from the grantor to the beneficiaries.

You cannot use the trust assets for your own benefit, and must be impartial when working with beneficiaries. You are required to invest your trust assets in a prudent manner that will result in reasonable growth with minimal risk. You will also be required to keep records and file tax returns which you can report to the beneficiaries as required through the trust.

If you want more information about successor trustees, don't hesitate to contact the firm right away. With the right lawyer on your side, you may be able to carefully work through your new responsibilities. You don't have to work as a trustee alone. You can rely on trustworthy and helpful team of attorneys and professionals to guide you through the process. Call a local attorney today using this directory to get started.