A successor trustee takes over when a trustor or a previous trustee dies or cannot manage a trust for whatever reason. This is often indicated in a living trust, but the beneficiaries or a judge may decide on the successor trustee if not already stated in the document.
As a trustee is in charge of managing the trust, choosing one is a big deal. It essentially gives a trustee power to take over some crucial decisions.
That said, how far can that power go? What decisions can a trustee make? Can beneficiaries have a successor trustee removed in California? Let's look at what our prescreened California Estate Planning Attorneys have to say about it:
What Can A Successor Trustee In Los Angeles Do?
Upon the passing of the first trustor or the previous trustee, successor trustees may take over immediately. The replacement trustee may also take over if the original trustor or previous trustee is still alive but unable to manage their own affairs. For example, if a trustor or a previous trustee has dementia.
Most trusts have clauses describing how and when incapacity can be demonstrated. A physician or other designated third party may frequently be required to certify that the trustor or trustee is incapable of handling their own affairs.
If a competency evaluation is required, it is typically started by family members who are beneficiaries and/or successor trustee(s). Of course, the initial trustee may always choose to voluntarily resign from their position if done correctly.
If you're having problems with a trust, you should contact a Living Trust Lawyer in Los Angeles. An attorney can help you sort through the possible issues with finding or choosing a successor trustee in California.
Does The Successor Trustee Own The Trust's Assets?
The titles of trust assets are transferred into the replacement trustee's name, but only once they have accepted the manage the trust. Notably, this does not imply that they are the actual owners of those assets.
The trustee is the person overseeing a trust, a separate legal body. The trust must be managed by successor trustees per its conditions to benefit the heirs. For example, they cannot typically refuse dividends or disinherit beneficiaries unless the trust expressly gives them that power.
Again, choosing a trustee is a crucial decision trustors must make. Not only should you have an excellent personal relationship with your chosen trustee, but you also have to make sure they can manage the financial and legal side of the trust.
Contact a Living Trust Attorney in Los Angeles to ensure everything's in place. A California Estate Planning Attorney can also help you determine who you should choose as an appointed trustee.
Can Beneficiaries Stop The Appointment Of An Indicated Successor Trustee?
Yes, but only if they can demonstrate the successor trustee is unqualified for the position or if indicated in the trust that they have the authority to do so. If a replacement trustee behaves negligently or improperly, courts have the power to dismiss them.
However, the successor trustee is typically whoever the trust designates, and only the current trustee has the authority to change that designation. Thus, the trustor must make the right choice from the beginning.
Of course, a trustor may make a mistake on who they choose. As having someone dismissed as a trustee is a complicated process, beneficiaries should contact a prescreened Estate Planning Attorney in Los Angeles to help review the trust, gather evidence, and bring it to the court's attention.
Hire A Los Angeles Living Trust Attorney Near You
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