Are You Named as a Successor Trustee?

Many parents name an adult child as the next (or “successor”) Trustee of their Living Trust. The Trust typically provides that the adult child will become the Trustee if the parent becomes incapacitated, or passes away. It is a big responsibility, and many times the adult child is not familiar with their new legal responsibilities.
I spend many hours each week discussing the legal “do’s and don’ts” with new Trustees who must now administer a Trust. This happens when the parent has passed away, and the named successor Trustee must “wind up the affairs” of their deceased parent. Other times, the parent is ill, becoming forgetful, or can no longer manager their own affairs. The trust assets must now be properly managed by the successor Trustee, while abiding by the legal requirements.
It is critical that a Trustee understand their new job. The Trustee must read the trust, and understand what direction it gives. Bills, creditors, taxes, paying for care – there can be many moving parts when handling someone else’s assets. To complicate matters, sometimes the adult children do not get along, or there is a history of dysfunction or mistrust among family members.
If you are named as a Trustee of someone’s trust, the law requires that you be informed and knowledgeable. Making mistakes because the Trustee was unaware of the legal requirements is not an excuse, and does not relieve the Trustee of liability. If you find yourself in this situation, you should be honored that you were trusted enough to be given this job. However, it is also expected that you, as Trustee, will retain a lawyer and CPA to guide you through the process properly.
For more information, please visit www.themcnamaralawfirm.com, or call the McNamara Law Firm at (661) 210-8232.