Are you looking to resign or decline as a Trustee? There are great differences between a Resignation as a Trustee and a Declination as a Trustee of a Trust, which can affect the duties of the trustee.
Before a person who is named in a a trust begins to act as trustee, he or she may decline to act. No one can force a person who is nominated to act as a successor trustee to act, against his or her own wishes.
A declination as Trustee means you have never acted as a trustee in this case. A resignation as Trustee means you have started to act as a trustee in this case.
Can you resign as a trustee? Yes, you can resign as a trustee, if there are provisions for a resignation in the trust. If there are no provisions for a trustee to resign, you can petition the court to approve your resignation. The court will grant you the ability to resign and give you dates by which you will have to account. The Court will further appoint a successor if there is one named, and if there is not a successor named in the trust, the court can appoint one, upon a petition by a beneficiary of you, if you are the trustee.
Perhaps you have had it with a particular beneficiary and want to quit as a trustee!!
Before you tender your resignation as a trustee, you should look to the trust for methods of resignation and timing of the accounting for the trust. Getting advice from a trust attorney before you resign as trustee can save you money and lots of future headache.
Sometimes, the trust allows the existing trustee to name the next trustee. Other times, the trust instrument may state that a majority of income or principal beneficiaries of the trust can designate the next trustee, or names a specific person to act as the next trustee, called the successor trustee.
However, once the named successor trustee has accepted the position of trustee, or acted on the office of the successor trustee, all of the duties and liabilities of a trustee are applicable to him or her, including the duty to preserve the assets of the trust and to account for them.
So, if you have been named as a successor trustee of a trust and the trustor is now deceased, you must take a look at many variables before you accept the office of the trustee.
Here are some factors and a list for you to evaluate before you say yes to acting as a trustee:
Here are some factors and a list for you to evaluate before you say yes to acting as a trustee:
Assets of the Trust;
Income of the Trust;
Expenses of the Trust;
Liabilities of the Trust;
Beneficiaries of the Trust;
The language of the Trust;
You ability to keep records of the Trust;
Your ability to financially manage the assets of the trust;
Title to the assets of the trust and decedent.
Your duty to account.
Discuss your potential trust administration case with us before you accept to act as trustee. Our lawyers have over 28 years of experience in trust management and trust administration. At Sirkin Law Group, PC, our lawyers can help you evaluate your duties and your liabilities as a trustee. Call 818.340.4479 or email us: [email protected].
