So you’ve done the responsible thing and set up a trust. Maybe it is to smooth and arrange things when you die or become incapacitated. Maybe it is more complex, to protect assets or minimize tax exposure. It was no fun at all, but you did it. You’ve even identified a person to act as Trustee. And they’ve agreed to do it. You’re feeling good about things.
But life happens and it may be years before anybody needs to actively manage the Trust. In that time, your designated Trustee may have changed circumstances (moved, gotten sick or older, taken on additional responsibilities, etc.). There is no guarantee that they will be able or willing to carry out their duties as Trustee.
Fortunately, there is a simple way to minimize the risk of a missing, incapacitated or unwilling Trustee. A good Trust will have multiple Successor Trustees named. A Successor Trustee is just what it sounds like – a willing Trustee who can take over the Trust responsibilities in the event of a Primary Trustee’s inability or unwillingness to perform those duties.
A best practice is to name at least two Successor Trustees. Your estate attorney can walk you through the selection process. Ideally, one would be a trusted friend or family member who has agreed ahead of time to act as Trustee (it’s best not to surprise anybody when the time comes). The other is often a professional who can step in and act objectively and competently. This is typically a professional fiduciary, a bank, or other financial firm. The benefit of naming a professional is that this is what they do for a living and they are likely to be available and willing if other Trustees decline to take on the role. They are also obligated to provide accounting and communication to all involved parties, which minimizes surprises or distrust.
Naming or adding Successor Trustees to your Trust is a simple best practice that helps safeguard your assets and ensures that your wishes are carried out.
