When a trustor passes away, his or her property will be transferred to a successor trustee designated by the trustor. Successor trustees are typically family members of the original trustor.
Trusts are in place in order to serve as a planning tool so that assets can be properly distributed. In most cases, trusts will name the successor trustee at the time of the trust being established. If the grantor wishes to change or add someone as a successor trustee, this can be accomplished by amending the original document.
When Does A Successor Trustee Take Over?
When a grantor is no longer able to act on their assets and finances due to death or incapacity, the successor trustee will assume a large responsibility.
If a grantor becomes incapacitated, the trustee will stand in for them in order to take full control of their finances. Tasks such as paying bills, selling or refinancing assets, and making financial decisions will now fall under the umbrella of responsibilities that are passed down. The successor will be able to do anything with the assets that the grantor was able to do as long as these decisions adhere to the instructions in the trust agreement and doesn’t violate the trustee’s fiduciary duties.
In the case of a death, the successor trustee assumes the role of an executor by listing an inventory of the grantor’s assets, paying their final bills, selling assets, final tax returns, and finally distributes the assets in accordance to the instructions that were noted in the trust.
Successor Trustee & Court Supervision
It is important to note that an appointed successor trustee will be acting with no court supervisions or guidelines. It is completely up to the successor to do right by the grantor and take care of all of the tasks that need to be completed. Although the court itself provides no supervision or guidance, the grantors attorney along with the CPA and other advisers will help the successor in completing the tasks.
