Resignation of Trustee and Appointment of Successor Trustee

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Simple Resignation Of Trustee And Appointment Of Successor Trustee Template
Sample Resignation Of Trustee And Appointment Of Successor Trustee

Can a successor trustee resign?

Is it necessary for a trustee to fulfill their duties if they are designated in a trust document? They are not in any way. It is possible for a trustee to resign from their position if they are unable or unwilling to carry out their duties. It is not uncommon for trustees to leave their positions before the administration of the trust has even begun. If this is the case, the individual who has been named as the successor trustee should convey their desire to step down to the attorney who is in charge of administering the trust and sign a paper titled “Declination to Serve as Trustee.” The position of trustee would then be assumed by the person who is designated in the trust document to serve as the subsequent alternate trustee. A trustee who declines to act prior to taking any acts that relate to the trust or estate of the decedent will not be held liable for any consequences resulting from the administration of the estate. Sometimes, a trustee will want to step down after serving as the trustee of a trust for a specific pinch of time, which is a situation that is somewhat more problematic.

What to do when a trustee resigns?

It’s important to know exactly how the trust came to be, what it owns, and what it does. That calls for some in-depth research and consultation with the trustees who made the appointments. What matters most to the trust’s management and consideration depends on a number of factors, including whether or not the trust has been run informally in the past. Do I trust the other trustees to make the right decision, and how will I handle having to disagree with a suggested course of action or cast a no vote on a formal proposal? Remember that unless the trust deed specifies a different process, such as a majority vote, all actions of the trustees require unanimous consent. If you look yourself in the unenviable position of not wanting to continue serving as a trustee, but the party holding the power of appointment is unable to cooperate, you may have a difficult time resigning. The ability to resign under the Trustee Act of 1956 is first determined by the trust instrument, which takes precedence. Unless otherwise specified, resignation is governed by the Trustee Act. If there are two or more trustees, and one of them wants to resign, they can do so by deed with the approval of all the other trustees and anybody else with the authority to appoint trustees under the Act. Appointing a new trustee is optional.

How can a trustee be appointed?

The grantor of a revocable living trust has the ability to choose who will succeed them as trustee in the event of their passing. A court may appoint a trustee to administer the trust property and its distribution in the event that the person who was designated as trustee is incapable or unable to carry out their responsibilities.

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Resignation of Trustee and Appointment of Successor Trustee

Summary

A court may appoint a trustee to administer the trust property and its distribution in the event that the person who was designated as trustee is incapable or unable to carry out their responsibilities.

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