Most people who create a revocable living trust name themselves as the trustee. This allows you to maintain control over the trust and the assets in the trust during your lifetime. However, the time will eventually come when you are unable to perform your duties as trustee.
This could be due to incapacitation or even death. Naming an appropriate successor trustee is critical to keeping your trust operating smoothly and ensuring your beneficiaries are protected. Keep reading below to learn from a lawyer handling wills and trusts in Oklahoma about naming a successor trustee for your living trust.
What Does a Successor Trustee Do?
As the name implies a successor trustee is the person who follows you as trustee when you are no longer able to perform the trustee’s duties. Your successor trustee has the legal right to do anything that you could have legally done with the trust. As long as the trustee does not violate the trust documents or their fiduciary duty to the beneficiaries, they have broad discretion in managing the trust assets.
Some of the things a successor trustee might need to do include:
- Making financial decisions
- Paying bills
- Buying or selling property
- Making distributions
- Filing tax returns
Since a successor trustee has significant authority over the trust, you must be careful to name someone that you trust with this task.
When Is a Successor Trustee Needed?
More than likely, you are the current trustee of your living trust. This is a common arrangement, and you will likely continue to serve as the trustee as long as you are able. However, a successor trustee will be needed in the event of your:
- Death
- Incapacitation
If a successor trustee is properly named in your trust documents, then the successor trustee can easily take over your affairs without court intervention. This allows the details of your trust to remain private.
Who Would Make a Good Successor Trustee?
There are many people who could be selected as your successor trustee. Individuals commonly choose:
- An adult child
- A close family member
- A trusted friend
- A professional trustee
Your successor trustee does not have to be related to you. In fact, some people choose to name a professional or corporate trustee. For instance, the trust department at your bank might be named as your successor trustee.
Who you choose is up to you, but it is always wise to have a conversation with your successor trustee. You should inform them that you have named them as successor trustee so that they are ready to step in if needed.
Choosing the Right Successor Trustee For Your Living Trust
Before you choose a successor trustee, you should carefully consider their qualifications. Think about the types of accounts they may need to manage or the types of transactions they will need to deal with. Make sure they are comfortable taking on that responsibility instead of just naming them in the trust without a conversation. An experienced Oklahoma City trust attorney can help you select and educate the right successor trustee for your situation.